Major Chinese property stocks have rebounded in the fourth quarter as Beijing works to stabilize the sector.
Shares of major Chinese developers listed in Hong Kong and on the mainland have recovered after hitting a trough in October. China Resources Land Ltd.
has led with a gain of nearly 8% and China Overseas Land & Investment Ltd.
has advanced almost 6%. Both companies are state-backed.
China Evergrande Group
, the country’s largest property developer by market value, has risen more than 4% while rival Sunac China Holdings Ltd.
edged up 1%, outperforming the benchmark Hang Seng Index’s
losses of about 8.3% in the fourth quarter so far.
China’s moves to cool its red-hot property market pressured some indebted developers. But the situation has eased this quarter, with some cities relaxing rules on presales of properties, according to local media reports, and some banks offering cheaper mortgages to stimulate demand. Property is a major pillar of the economy and is crucial to Beijing’s drive to boost consumption. In addition, China has loosened curbs on real-estate firms raising money or refinancing debt, both onshore and off, said Mandy Chan, an investment director at HSBC Global Asset Management. In November, developers raised nearly $8.8 billion selling bonds at home and abroad, up 22% from October, according to Dealogic. The value of offshore issuance nearly doubled and that included deals from Evergrande and Sunac.
Also popular on WSJ.com:
Providing critical information for the U.S. trading day. Subscribe to MarketWatch’s free Need to Know newsletter. Sign up here.
Source : MTV