Shares of mainland developers fell yesterday but recovered later despite a denial by the central government that it would ease its property policy.
On Tuesday evening, the National Development and Reform Commission denied media reports that quoted an unnamed NDRC official as saying loosening the property policy could be an option to rescue the beleaguered market.
Mainland media also reported that the People's Bank of China had issued new guidelines allowing banks to offer up to 30 per cent discounts on loans to first-time homebuyers, which drove up property shares on Tuesday.
But after the market opened yesterday morning, shares of mainland developers fell. However, most recovered in the afternoon session.
Agile Property, which dropped 2.12 per cent to HK$9.71, climbed back up to close 1.62 per cent higher than the previous day, at HK$10.06. China Overseas fell 0.92 per cent to HK$17.16 before rising 0.92 per cent over the previous close to end the day at HK$17.48.
However, KWG Property fell 3.5 per cent to close at HK$4.96 and Shimao Property dropped 2.2 per cent to HK$11.56.