Advertisement
Property policies
BusinessMarkets

China’s property developers rally as authorities remove strictures to revive slumping home sales

  • The shares of Country Garden Holdings, Longfor Group Holdings, China Overseas Land & Investment (Coli) all soared by over 10 per cent in Hong Kong
  • The Hang Seng Mainland Properties index by 4.7 per cent in its biggest one-day gain in four days

Reading Time:2 minutes
Why you can trust SCMP
1
A real estate expo in the Fujian provincial capital of Fuzhou on November 16, 2012. Photo: Xinhua
Jiaxing Li

China’s developers are surging in the Hong Kong stock market, as more local authorities rolled out incentives and stimulus measures to shore up home sales in the world’s largest property market.

Advertisement
The shares of Country Garden Holdings, Longfor Group Holdings, China Overseas Land & Investment (Coli) all soared by over 10 per cent in Hong Kong, lifting the Hang Seng Mainland Properties index by 4.7 per cent in its biggest one-day gain in four days.

Sentiments were buoyed after local authorities of Suzhou said they would remove the restrictions on non-local residents who want to buy their first homes in the Jiangsu provincial city. In the Guangdong provincial capital of Guangzhou, the government lifted a price ceiling, allowing developers to raise home prices by 10 per cent, from the previous limit of 6 per cent.

The latest market-friendly policies in Suzhou and Guangzhou came hot on the heels of Wednesday’s press release by the Ministry of Housing and Urban-Rural Development, which promised to “spare no effort” in ensuring the healthy development of the housing market.

Unfinished apartment buildings at the construction site of China Evergrande Group’s Health Valley development on the outskirts of the Jiangsu provincial capital of Nanjing on October 22, 2021. Photo: Bloomberg.
Unfinished apartment buildings at the construction site of China Evergrande Group’s Health Valley development on the outskirts of the Jiangsu provincial capital of Nanjing on October 22, 2021. Photo: Bloomberg.
China’s central government and local authorities began putting a raft of regulations in place in 2017 to tamp down on what they considered warning signs of a burgeoning property bubble. The rules had included caps on prices, mortgage limits, and various strictures on property developers.
Advertisement
Advertisement