(Bloomberg) Bloomberg’s Intelligence gauge for Chinese property developer shares rose 3% on Wednesday after Beijing eased a year-long cap on loans for the sector to finance public rental housing.
The authorities urged lenders to support affordable rental homes by availing commercially sustainable and legitimate financial products and services while keeping the risks in check.
The move by the People’s Bank of China is seen to give the clearest signal of the government’s intention to salvage the ailing property sector.
Yan Yuejin, a research director at E-house China Research and Development Institute, says the move is a signal of credit easing. Head of macro and strategy research at China Renaissance Securities Hong Kong Ltd expects the move to avert weaknesses in residential development.
The share jump is the most in three weeks and happens at a time when embattled Evergrande said it would not resort to a “fire sale” of its assets.
The surge in property stocks now follows previous advances by firms listed in the US after state-backed funds started buying the shares.
600340 is up +4.89%, 0813 is up +5.27%, 1918 is up 2.22%.
