(Bloomberg) Bloomberg’s index of stocks of China’s real estate rose 4.1% on Wednesday on reports the regulators are considering easing curbs on access to funds tied in escrow for pre-sold properties.
The regulators are expected to provide the instructions on the details later this month through the local governments.
The cash easing is reportedly a part of a package of policies the regulators are targeting to tame the deepening crisis in the country’s real estate sector in the wake of the Evergrande debt situation.
The reports come when the Chinese central bank is in policy loosening mode to boost the slowing economy, with the officials cutting rate this week and promising more support.
The cash held in escrow by Chinese developers is aimed at ensuring that real estate firms do not abandon projects and use the funds for unintended purposes, with the projected release now expected to boost liquidity for the cash trapped firms.
Property shares react. 3333: HKG is up +4.88%, 813: HKG is up +11.33%, 2777: HKG is up +9.81%.
