Chinese property shares are poised to enter a bull market for the first time this year on continued optimism about authorities’ fresh efforts to boost housing demand and improve developers’ finances.
A Bloomberg Intelligence gauge tracking the sector rose as much as 3% on Monday, marking a gain of more than 20% from a July 24 low. Leading the pack are Guangzhou R&F Properties Co. and Yuexiu Property Co., with each jumping more than 10%.
The gains extended a rally from last week after Chinese leaders made stronger pledges to revive an ailing economy by stimulating private consumption and easing housing curbs. Officials have since followed up with a further show of support, such as urging banks to loosen property purchase restrictions and vowing to maintain stable capital market access for developers.
Meantime, authorities in cities including Beijing and Shenzhen also have vowed to heed the leadership’s call for optimizing property policies, suggesting easing measures are on the way, the Securities Times reported Monday.
