Chinese property developers' shares rally on further relaxation of real estate policy

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Shares of Chinese property developers stage a strong rally on Monday as the country further relaxed property policy to support the struggling housing market.

In Hong Kong, Sunac China is surging more than 22%, Seazen up 15.7%, Longfor Group up more than 11%, China Resources Land up more than 10%, Greentown China, Yuexiu Property and Country Garden up about 9%.

Shares of other companies in the real estate industry chain, including property management companies, construction machinery manufacturers, building material suppliers, cement producers, household goods suppliers and home appliance makers are also outperforming.

China hina’s two largest cities Beijing and Shanghai on Friday announced that they would allow home buyers to enjoy preferential loans for first-home purchases regardless of their previous credit records, after Guangzhou and Shenzhen announced the similar policy relaxation. That means all of China’s first-tier cities have broadened the definition of first-home mortgage. Read more …

Last week, China’s financial regulators cut the down-payment requirements for first- and second-time home buyers and lowered rates on existing mortgages, in a major move to halt a slump in the country’s residential property market. Read more …