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Troubled property developer continued its uptrend on Monday, surging as much as more than 18% to hit a high of HK$0.96 before paring gains to 7.4%.
In addition to a series housing policy easing announced by the Chines authority to shore up the struggling real estate sector, the rally was also partly driven by good news for Country Garden’s property project in Malaysia.
Malaysian Prime Minister Anwar Ibrahim announced that Country Garden’s Forest City, a large-scale development project in Malaysia’s Johor state, will be classified as a special financial zone, in the hope that it will attract international investors and talents to settle in Malaysia.
Qualified skilled workers working in the special financial zone will enjoy a special income tax rate of 15%, while a customs fast track will be set up to facilitate the entry of skilled overseas workers, he said.
Country Garden started to develop the Forest City about 10 years ago, aiming to attract 70 million residents, with the total cost estimated to be more than $100 billion. But rumours of a ban on sales of the projects to foreigners in Malaysia and strict capital controls in China have turned the project into a ghost town.
