Shares of Chinese property developers rally after authorities vowed to promote healthy development of real estate market

 

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Shares of Chinese mainland property developers stage a strong rally in Hong Kong after the State Council vowed to promote healthy development of the real estate market.

CIFI Holdings is surging more than 14% as of 10:40 am local time, LVGEM (China) Real Estate jumping over 10%, Powerlong surging more than 9%, Guangzhou R&F Properties surging nearly 7%, Country Garden up over 6% Seazen Holdings, Longfor Group, Times China and Agile Group gaining more than 5%.

The State Council, China’s cabinet, said at a regular meeting on Friday that the country will take one-city-one-policy approach to promote stable and healthy development of the real estate market. The cabinet reiterated the pledge to meet the so-called “rigid housing demand” and reasonably support upgrading housing needs.

China has preliminarily established the framework of a fund for ensuring financial stability and raised 64.6 billion yuan ($9.55 billion) in the first round of funding, said the China Banking and Insurance Regulatory Commission on Thursday.

Many expects expects the authorities to introduce more measures to help address the ongoing mortgage boycott crisis and ensure home deliveries.

In addition, CIFI Holdings’ largest shareholder bought 500,000 shares on Friday and vowed to further increase shareholdings. Since March 25, the company’s major shareholders have purchases a total of 12.03 million shares with HK$46.29 million.