By Bingyan Wang
Shares of Chinese developers rose Monday after major Chinese cities including Beijing and Shenzhen vowed to better meet the public’s growing housing demands, adding to national efforts to revitalize the property market.
Hong Kong-listed Longfor Group Holdings and Country Garden Holdings advanced 8.5% and 4.1%, respectively. The Hang Seng Mainland Properties Index climbed an additional 3.5% after last week’s strong gains. China Vanke added 2.5% on the Shenzhen market and China Merchants Shekou Industrial Zone Holdings rose 2.9%.
Over the weekend, the Beijing, Shenzhen and Guangzhou governments said separately that they will “strongly support and better meet demands” from residents and optimize housing policies.
The commitment by major local governments came after the Communist Party’s Politburo last week called for property policies to be adjusted, citing changed supply-demand dynamics.
Since November, Chinese authorities have been trying to prop up the property market and stimulate home demand after a yearslong crackdown on housing speculation. The weekend notice was the first time top-tier cities indicated that material property stimulus measures were coming.
Longfor Group and Country Garden have soared more than 50% and 40%, respectively, since the Politburo meeting last Monday.
Write to Bingyan Wang at [email protected]
Read the full article here
