After first-tier cities eased restrictions on home purchases shortly after the Politburo pledged to stop housing market declines, shares of Chinese property developers surged on Monday ( Sep 30 ).
Hong Kong’s Hang Seng Mainland Properties Index jumped more than 10 per cent in first investing, and the island’s CSI 300 Real Estate score gained around 9 per share.
After China’s central bank unveiled its biggest stimulus since the pandemic, the Hong Kong sub-index has increased 40 % since last Tuesday.
By 2.12am GMT, Shenzhen-based Kaisa Group and Fantasia rallied 45 per share and 32 per cent, both, while Guangzhou-based R&, F Properties rose 20 per cent.
Vanke stocks in Shenzhen were up 9.5 per cent, and Shanghai-listed Greenland increased 10 per share.
Shanghai and Shenzhen announced on Sunday that they would ease restrictions on home buying by non-local consumers and reduce the minimum downpayment amount for first owners to no less than 15 %, while Guangzhou became the first top-tier area to do so.
Shanghai and Shenzhen were planning to ease important remaining restrictions in order to attract buyers, according to a Reuters report from Friday.
In sweeping policies to support the nation’s struggling property market as the economy slows, China’s central bank separately announced on Sunday that it would advise banks to lower mortgage rates for existing home loans before Oct. 31.
According to state media, China’s leaders pledged on Thursday at a Politburo meeting to work together to achieve the country’s goal of roughly 5 % economic growth by 2024 and stop declines in the housing market.
Investment bank CLSA referred to the easing as a” good and quick start to achieving the central government’s target” in a research note.
We anticipate more liquidity injections from the central government to destock the housing market and address the oversupply issues, which takes time, it added.
The brokerage anticipated a bottom in the housing market in the second half of 2025.