China property shares rise on financial support policy (updated)

KWG group

11/07/2023 03:24

(Adds share reactions, details on loan policy from paragraph 3
onward)
       HONG KONG, July 11 (Reuters) - Shares of Chinese
property developers rose on Tuesday after Chinese regulators
extended some policies in a rescue package introduced in
November to shore up liquidity in the real estate sector.
    The sector has been hit by many company defaults amid a debt
crisis since mid-2021, triggered by non-repayments of China
Evergrande Group  3333.HK , the world's most indebted property
developer. 
    The central bank on Monday said it would continue a policy
to extend developers' loans due this year by 12 months, with
current supports for the sector failing to gain traction and
markets expecting more stimulus to be rolled out soon.
    By 0200 GMT, Hong Kong's Hang Seng Mainland Properties Index
 .HSMPI  narrowed gains to 1%, while China's CSI 300 Real Estate
Index  .CSI000952  edged up 0.6%. 
    Sunac China  1918.HK , Logan Group  3380.HK  and KWG Group
 1813.HK  listed in Hong Kong were among the top gainers, rising
around 4%.
    Last November, the People's Bank of China (PBOC) issued a
notice outlining 16 measures to support the cash-strapped
sector, including loan repayment extensions, in a push to ease a
liquidity crunch.
    An additional one-year extension to these kind of existing
loans due to be repaid before the end of 2024 is allowed, the
PBOC said on Monday.
    Separately, loans issued to support the delivery of
unfinished projects before the end of 2024 will not be
downgraded in risk classification during the loan term, the
central bank added.

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