China property stocks rally on reports of end to "three red lines" policy

KWG group

29/01/2026 04:30

** Hang Seng Mainland Properties Index .HSMPI in Hong Kong jumps more than 4%

** CSI300 real estate index .CSI000952 in mainland China rallies over 4%, its biggest single-day gain in over a month

** Cailianshe as well as China Real Estate Business, media platforms managed by The Ministry of Housing and Urban-Rural Development (MOHURD), report Chinese developers are no longer required to report monthly data for the "three red lines" policy to regulators, signalling an end to the policy

** Reuters could not immediately reach MOHURD for comment

** The "three red lines" policy put caps on debt-to-cash, debt-to-assets and debt-to-equity ratios for developers to borrow new loans from banks; the crackdown on unbridled borrowing in the property sector triggered a debt crisis later

** Shares of Logan Group 3380.HK surge nearly 40%, while those of China Aoyuan 3883.HK jump 32%

** Sunac 1918.HK, Zhenro Properties 6158.HK, Kaisa Group 1638.HK and KWG Group 1813.HK all gain more than 20%

** The main Hang Seng Index .HSI rises 0.5%

(Reporting by Clare JIm and Jiaxing Li)

((clare.jim@tr.com))