UpdateProperty surge leads mainland China stocks to biggest gain in four months ahead of NPC meeting
Analysts say mainland housing market is warming up
Mainland China stocks enjoyed their biggest daily gain in fourth months on Wednesday, lifted by a surge in the property sector, as hopes grow for more stimulus measures ahead of annual legislative and political advisory meetings.
The Shanghai Composite Index rose the most since early November, up 4.3 per cent, or 116.51 points, to close at 2,849.68.
Property and construction material shares soared on the mainland, with many local governments having rolled out stimulus measures to clear stockpiles of unsold property. The city government of northeastern Shenyang unveiled a bold plan to offer “zero down payment” loans to fresh university graduates to buy homes, but called off the move by the end of the day after sharp online criticism.
Analysts said signs suggested the mainland housing market was warming up, with housing prices in big Chinese cities surging, and the government’s accelerated policy support and a recent cut in banks’ reserve requirement ratio could lure more funds into the market.
In this kind of environment, the government cannot let the property market go down
“Recently we’ve had a very strong property market in the first-tier cities, so that means that liquidity actually remains very okay,” Alex Wong Kwok-ying, asset management director at Ample Capital, said.