Dow Jones Newswires: Stocks of Chinese developers jump after Beijing signals support for property sector

by | Jul 24, 2023 | Stock Market

Shares of Chinese developers jumped early Tuesday after China’s top leadership pledged more policy support and adjustments to property policy, hinting at easing measures targeted at the struggling property sector. Property developers’ shares advanced in both the Hong Kong and mainland markets. The Hang Seng Mainland Properties Index rose 10%, outperforming the benchmark Hang Seng Index
which was up 2.8%.

Country Garden Holdings
climbed 14% and Longfor Group Holdings
advanced 21% in Hong Kong. China Vanke
added 6% and Poly Developments & Holdings Group
jumped 8% in mainland trading. China’s Politburo, the country’s top decision-making body, held a meeting Monday acknowledging that the economy faces new challenges such as weak domestic demand, some struggling enterprises, risks in several key areas and a complicated external environment. The meeting came after data showed China’s economic growth slowed to 0.8% in the second quarter compared with the prior quarter. Home sales and home prices have fallen in recent months after a brief uptick at the beginning of 2023, another challenge facing the world’s second-largest economy. Officials also said Beijing will adjust property policies promptly as supply-demand dynamics have changed, hinting at easing measures to rescue the struggling property sector, which accounts for one-third of China’s economy by some estimates. In 13 major cities including Shanghai, Beijing and Hangzhou, the number of listings for existing homes rose 25% in May …

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