China's property firms rally after Beijing pledges economic support
By Clare Jim and Karin Strohecker
HONG KONG (Reuters) -Investors piled into Chinese property developers' shares and bonds on Tuesday following a sharp selloff in the previous session, after policymakers said they would step up support for the embattled sector.
Hong Kong's Hang Seng Mainland Properties Index jumped 14%, while the CSI 300 Real Estate benchmark gained 8% with the latest rally putting the country's real estate sector indexes on track for their first monthly gain after four months of hefty losses.
Property giant Country Garden and its management unit Country Garden Services, both listed in Hong Kong, rebounded 18% and 26.5%, respectively — more than offsetting Monday's sharp declines.
Country Garden's May 2025 dollar bond firmed to 21.675 cents on the dollar, versus 15 cents on Monday evening. Its Shanghai-traded bond surged 25% to 38 yuan, while a Shenzhen-traded issue rose 44% to 33.6 yuan.
The company has brought in accountancy firm KPMG to perform due diligence on its assets and liabilities, according to a report by Debtwire. Country Garden did not immediately respond to request for comment
The broad rally was fuelled by China's top leaders on Monday pledging to ramp up policy support for the economy amid a torturous post-COVID recovery, and focusing on boosting domestic demand.
For the property sector, the Politburo, a top decision-making body of the ruling Communist Party, said it is necessary to adapt to significant changes in market supply and demand and optimise property policies in a timely manner.
While few details of the support measures were provided, investors focused on one change in tone in particular, which they thought could mean more property stabilisation steps were imminent.
The Politburo
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