SHENZHEN, CHINA – MARCH 09: View of high-rise commercial and residential buildings on March 9, 2016 in Shenzhen, China. China’s overall economy is slowing down, and real estate prices and stock market bubbles are at risk. (Photo by Chung Sik/Getty Images)
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Share prices of most Hong Kong-listed Chinese property stocks have soared to their highest levels in more than a year as China’s economic stimulus policies continue.
The real estate sector saw the largest gains Hang Seng Indexand Longfor Group Holdings The largest increase was over 25%.
Shares of other real estate developers also rose sharply. Shimao Group surged over 87%, while Kaisa Group It rose 40.48%, both hitting their highest prices in more than a year.
Similarly, China Overseas Development It rose 12.31%, a new high since September last year. Vanke It rose 39.6%, the highest since August 2023.
Hang Lung Properties and China Resources Land Increases of 10.01% and 10.82% respectively.
The Hang Seng Index rose 6%, while the Hang Seng Mainland Property Index soared more than 14%. Markets in mainland China were closed for the Golden Week holiday.
Continued drag on the real estate sector will lead to a sharp fall in demand, leading to below-target growth.
weekendAfter the central bank launched a series of policy stimulus measures last Tuesday, major cities in mainland China have launched easing measures to enhance confidence in home buying.
Guangzhou Municipal Government It was announced that all home buying restrictions will be lifted starting from Monday. Shanghai’s rules shortening tax payment deadlines also took effect on Tuesday. Shenzhen has also relaxed restrictions on home purchases, allowing buyers to buy an additional apartment in some areas.
Morgan Stanley wrote in a report released on Wednesday that while these measures will help stabilize the housing market, raising prices and restoring demand will be a difficult task.
“The continued drag on the property sector will result in a sharp fall in demand, resulting in below-target growth,” the investment bank’s Asia-Pacific economists wrote.
real estate Once accounted for more than 25% of China’s GDPBut since 2020, the industry has faced a long decline as Beijing cracks down on excessive debt in the industry.
Chinese officials have stepped up support to ease financial pressure on households and stabilize the struggling property market. However, these previous moves have not resulted in significant shifts.
