Country Garden's stock soared 8.75% in intraday trading on Wednesday, following reports that Chinese authorities are exploring a plan to provide funding support for embattled property developers like China Vanke.
According to Bloomberg News, regulators are considering allocating 20 billion yuan ($6.84 billion) in special local government bonds to buy unsold properties and vacant land from Vanke. Additionally, Vanke and its affiliates may be allowed to tap into other financing sources, such as new bond sales and bank loans, to help repay their public and private debt.
The proposed measures aim to alleviate the liquidity crisis faced by China's property sector, which has been grappling with sluggish sales and mounting debt. Other major developers like Sunac, Shimao, Fangdd, and Ke Holdings also saw significant stock gains in response to the news.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.