Updated:2024-10-08 03:11 Views:129
HONG KONG: Shares of China property developers surged on Monday (Sep 30) after first-tier cities eased curbs on home purchases, soon after the Politburo pledged to halt declines in the housing market.
Hong Kong's Hang Seng Mainland Properties Index jumped more than 10 per cent in early trading, and the mainland's CSI 300 Real Estate index gained around 9 per cent.
The Hong Kong sub-index has surged 40 per cent since last Tuesday after China's central bank unveiled its biggest stimulus since the pandemic.
By 2.12am GMT, Shenzhen-based Kaisa Group and Fantasia rallied 45 per cent and 32 per cent, respectively, while Guangzhou-based R&F Properties rose 20 per cent.
Vanke shares in Shenzhen were up 9.5 per cent, and Shanghai-listed Greenland increased 10 per cent.
Guangzhou on Sunday became the first top-tier city to lift all restrictions on home purchases, while Shanghai and Shenzhen said they would ease curbs on housing purchases by non-local buyers and lower the minimum downpayment ratio for first homebuyers to no less than 15 per cent.
Reuters reported on Friday that Shanghai and Shenzhen were planning to lift key remaining restrictions to attract buyers.
China's central bank separately said on Sunday it would tell banks to lower mortgage rates for existing home loans before Oct 31, as part of sweeping policies to support the country's beleaguered property market as the economy slows.
The easing comes after Chinese leaders pledged on Thursday at a Politburo meeting to strive to achieve the 2024 economic growth target of roughly 5 per cent and halt declines in the housing market, state media reported.
"We see it as a good and swift start to achieving the central government's target," investment bank CLSA said of the easing in a research note.
"We expect more liquidity injections from central government to help destock the property market and thus fix the oversupply issues, which takes time," it added.
The brokerage expected the property market to bottom out in the second half of 2025.tusk casino