China’s property stocks rose 7% Monday after Shanghai, Shenzhen, and Guangzhou eased homebuying rules as part of the country’s huge stimulus blitz.
Chinese property stocks got some positive news on Monday as three major cities announced easing of home-purchase restrictions.
The Hang Seng Mainland Properties Index soared 7% in Chinese trading. The climb was led by real-estate developers like Hong Kong-listed Longfor Group Holdings and Hang Lung Properties, which were up roughly 10% and 12%, respectively.
The surge comes after the cities of Shanghai, Shenzhen, and Guangzhou loosened homebuying restrictions, and after nation’s central bank said it will allow refinancing of mortgages. The moves are part of China’s new stimulus package meant to reinvigorate its slowing economy and weak property sector.
In Guangzhou, policymakers eliminated all restrictions on homebuying, removing evaluations of buyer eligibility and limitations on the number of properties owned.
The Sunday move made the port city the first major city to ease restrictions following the national government’s pledge last week to make the property sector « stop declining.
