China property shares firm after Beijing, Shanghai relax home purchase measures

KWG group

15/12/2023 02:58

** China property shares rise after Beijing and Shanghai
relaxed home purchase restrictions on Thursday    
    ** Hong Kong's Hang Seng Mainland Properties Index  .HSMPI 
firms 5%, while China's CSI 300 Real Estate Index  .CSI000952 
climbs nearly 3%
    ** Developer Sunac China  1918.HK  is biggest gainer among
peers, jumping 14&
    ** CIFI Holdings  0884.HK  surges 10.6%, Shimao Group
 0813.HK , Sino-Ocean Group  3377.HK , KWG Group  1813.HK  and
China Aoyuan  3883.HK  all gain over 7% 
    ** Thursday relaxations, including lowering minimum deposit
ratio for first and second homes, suggest renewed efforts by
authorities to revive sluggish housing market
    ** Analysts, however, think impact on both share reaction
and home transactions may be short-lived given homebuyers' weak
sentiment 
    ** Nomura says easing measures will not be strong enough to
revert decline in property sales and developers' funding
channels, and central govt will need to announce bolder steps to
support property sector 
    ** China's new home prices fell for fifth straight month in
November, down 0.3% on-month - official data on Fri

 (Reporting by Clare Jim)
 ((clare.jim@tr.com))