China's property shares surge as investors bet on stimulus hopes

KWG group

06/06/2023 04:22

HONG KONG, June 6 (Reuters) - China property stocks
listed in Hong Kong  .HSMPI  jumped nearly 8% on Tuesday as
investors clung to hopes that Beijing would roll out supportive
measures soon to bolster the embattled sector.
    Shares of major developer Longfor Group  0960.HK  surged 11%
while defaulted peers Sunac China  1918.HK  and KWG Grouop
 1813.HK  gained 12% and 18.6%, respectively, versus a 1.2% rise
in the broader Hang Seng Index  .HIS .
    Investors' hopes to see further national stimulus policies
increased last Friday after several second-tier cities announced
their own supportive measures. 
    The property sector, once a pillar of economic growth,
slumped sharply last year with developers defaulting on debt or
bonds and suspending construction of presold housing projects.
    Policymakers have rolled out measures since the second half
of 2022 to stabilise the property market that has been further
boosted by the lifting of tough COVID-19 curbs in December.
    Potential measures could include lower down-payment and home
purchase requirements, and refined measures to boost developers'
liquidity, analysts have said.    
     Property stocks listed in mainland China posted modest
gains on Tuesday, with the CSI 300 Real Estate Index
 .CSI000952  rising 2.3%.
    

 (Reporting by Clare Jim; Editing by Sherry Jacob-Phillips)
 ((clare.jim@thomsonreuters.com;))