Askume Hong Kong, Sep 30 – With the relaxation of home purchase restrictions in first-tier cities and the PolitburoShares of Chinese real estate developers rose on Monday on promises to arrest a property market collapse .
Hong Kong’s Hang Seng Mainland Real Estate Index (.HSMPI) rose more than 10% in early trade, and mainland China’s CSI 300 Real Estate Index (.CSI000952) gained nearly 9%.
Hong Kong’s sub-index has risen 40% since last Tuesday after China’s central bank announced its biggest stimulus package since the pandemic .
Shenzhen Kaisa Group (1638.HK) and Fantasia (1777.HK) were up 45% and 32% respectively by 0212 GMT, while Guangzhou R&F Properties (2777.HK) was up 20%.
The share price of Shenzhen Vanke (000002.SZ) rose 9.5%, and the share price of Shanghai-listed Greenland (600606.SS) rose 10%.
On Sunday, Guangzhou became the first first-tier city to lift all home-purchase restrictions , while Shanghai and Shenzhen said they would ease home-purchase restrictions for out-of-city buyers and lower the minimum down payment ratio for first-time home buyers to 15.
Askume reported on Friday that Shanghai and Shenzhen were planning to lift remaining key restrictions to attract buyers.
Separately, China’s central bank said on Sunday it would require banks to lower mortgage rates on existing home loans until Oct. 31, part of a broader policy to support the country’s struggling property market amid an economic slowdown.
China’s leaders eased that pressure by pledging at a Politburo meeting on Thursday to achieve economic growth of about 5% by 2024 and work to prevent a slowdown in the real estate market, state media reported .
“We believe this is a good and quick start to achieving the central government’s objectives,” investment bank CLSA said in a research note on the bailout.
“We expect more cash infusion from the central government, which will help reduce inventory in the property market and thus address the oversupply problem, but this will take time,” it said.
The brokerage expects the property market to recover in the second half of 2025.
