China plan to restore sector liquidity boosts property stocks (updated)

KWG group

14/11/2022 02:13

(Adds comment, updates share prices)
       HONG KONG, Nov 14 (Reuters) - 
    Chinese property stocks soared on Monday as the market
cheered an aggressive plan outlined by Chinese regulators to
shore up liquidity in the embattled sector, with the sub-index
surging close to a two-month high in early trading.
        The Hang Seng Mainland Properties Index  .HSMPI  gained
15%, while top property developers Country Garden  2007.HK 
soared 33%, narrowing gains after rallying as much as 52% to the
highest since July 27.  
    Longfor Group  0960.HK , Agile Group  3383.HK , R&F
Properties  2777.HK , Logan Group  3380.HK  and KWG Group
 1813.HK  all jumped almost 30%.
    Two sources told Reuters a notice to financial institutions
from the People's Bank of China (PBOC) and the China Banking and
Insurance Regulatory Commission (CBIRC) outlined 16 steps to
support the industry, including loan repayment extensions, in a
major push to ease a deep liquidity crunch that has plagued the
property sector since mid-2020.
    "We view the PBOC & CBIRC policy could be a game-changer for
being the first comprehensive supportive policy from central
authorities, unlike previous piecemeal steps," Citi said in a
note on Monday, describing the package as "soaking rain after a
long draught".
 (Reporting by Clare Jim; Editing by Ana Nicolaci da Costa and
Bradley Perrett)
 ((clare.jim@thomsonreuters.com;))