China property shares jump as major cities ease buying curbs (updated)

Kaisa group

30/09/2024 04:00

(Adds policy details, stocks performance, analyst comment)
    By Clare Jim
       HONG KONG, Sept 30 (Reuters) - Shares of China property
developers surged on Monday after first-tier cities eased curbs
on home purchases, soon after the Politburo pledged to halt
declines in the housing market.
    Hong Kong's Hang Seng Mainland Properties Index  .HSMPI 
jumped more than 10% in early trading, and the mainland's CSI
300 Real Estate index  .CSI000952  gained around 9%. 
    The Hong Kong sub-index has surged 40% since last Tuesday
after China's central bank unveiled its biggest stimulus since
the pandemic.
    By 0212 GMT, Shenzhen-based Kaisa Group  1638.HK  and
Fantasia  1777.HK  rallied 45% and 32%, respectively, while
Guangzhou-based R&F Properties  2777.HK  rose 20%.
    Vanke shares  000002.SZ  in Shenzhen were up 9.5%, and
Shanghai-listed Greenland  600606.SS  increased 10%.
    Guangzhou on Sunday became the first top-tier city to lift
all restrictions on home purchase, while Shanghai and Shenzhen
said they would ease curbs on housing purchases by non-local
buyers and lower the minimum downpayment ratio for first
homebuyers to no less than 15%.
    Reuters reported on Friday that Shanghai and Shenzhen were
planning to lift key remaining restrictions to attract buyers.
    China's central bank separately said on Sunday it would tell
banks to lower mortgage rates for existing home loans before
Oct. 31, as part of sweeping policies to support the country's
beleaguered property market as the economy slows.
    The easing comes after Chinese leaders pledged on Thursday
at a Politburo meeting to strive to achieve the 2024 economic
growth target of roughly 5% and halt declines in the housing
market, state media reported.
    "We see it as a good and swift start to achieving the
central government's target," investment bank CLSA said of the
easing in a research note. 
    "We expect more liquidity injections from central government
to help destock the property market and thus fix the oversupply
issues, which takes time," it added.
    The brokerage expected the property market to bottom out in
the second half of 2025.

 (Reporting by Clare Jim; Editing by Jacqueline Wong and Himani
Sarkar)
 ((clare.jim@thomsonreuters.com;))