The Hong Kong Hang Seng China Companies Index rose as much as 3.6%, with property companies such as Longfor and China Resources Land leading the charge.
A Bloomberg Intelligence index of Chinese property developers rose more than 8%. The down payment for first-time home buyers in China has been reduced to 20 per cent of the value of the home.
According to analysts at JPMorgan Chase & Co, including Karl Chan, these regulations will lead to an improvement in home sales in China's major cities in the short term, unleashing previously suppressed demand.
In addition, the announcement by troubled Country Garden that it would pay its coupon in ringgit also contributed to the rally, according to sources close to the matter.
Comments
No comment yet.