Chinese property stocks witnessed a remarkable surge on Thursday, as the country's top policymakers pledged to offer more stimulus measures for the struggling real estate sector. The Hang Seng Mainland Properties Index, which tracks Chinese real estate developers listed in Hong Kong, soared 15% in afternoon trading.
The Politburo, China's top policymaking body, vowed to prevent further decline in the property sector during a meeting on Thursday. Among the proposed measures, the government plans to ease home-purchase curbs further and control the addition of new housing projects.
To help complete existing projects, China will increase lending to developers through a whitelist program and provide further support for digesting housing inventory, according to the postmeeting communique. Analysts expect top-tier cities such as Beijing and Shanghai to relax home-buying restrictions following the meeting, with stronger implementation of policies to purchase unsold units from distressed developers.
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