Property developer shares shoot up on CE statement, China reports
Property plays rally after CY Leung's comments on suspension of property planand reports of easing restrictions on mainland homebuyers
Property stocks rose in Hong Kong and on the mainland yesterday after Chief Executive Leung Chun-ying said the "Hong Kong property for Hong Kong people" scheme could be suspended, and following reports that several mainland cities might relax measures designed to curb investment demand.
Shares in Hong Kong developers - led by Wharf and Sun Hung Kai Properties - surged after Leung said the market had cooled following the introduction of two stamp duty measures.
"The market interprets Leung's statement as a sign no more new cooling measures will be rolled out," Bocom International analyst Alfred Lau said.
Lau said the market had seen it as an excuse to lift property stocks, which were trading at big discounts, but the property market would continue to soften because the two toughest measures - double stamp duty and buyer's stamp duty - remained in place.
Strong gains in developer stocks saw the Hang Seng property sub-index rise 3.67 per cent yesterday, the biggest increase since January 2012. The broader Hang Seng Index rose 0.34 per cent.
Shares in Wharf climbed 4.3 per cent to HK$54.10, SHKP gained 4.06 per cent to HK$99.75, Cheung Kong rose 3.29 per cent to HK$134.90, Henderson Land Development jumped 3.18 per cent to HK$46.95 and New World Development added 3.27 per cent to HK$8.20.