Investors bet on China property curbs easing
A gauge of mainland property stocks posted its biggest gain in a month yesterday on speculation the central government is easing property curbs to prevent the economy from missing its growth target for this year.
China Vanke and Poly Real Estate advanced more than 3 per cent, with the Shanghai property sub-index climbing 2.1 per cent for the biggest gain since April 22. Greentown China Holdings and China Overseas Land & Investment jumped more than 5 per cent in Hong Kong.
The central government had allowed cities to adjust home-buying curbs - except for Beijing, Shanghai, Guangzhou and Shenzhen - the Southern Weekly reported on Thursday, citing several unidentified people from the housing ministry.
The China Securities Journal said yesterday the government would remove restrictions on home purchases depending on market conditions.
After four years of government restrictions to cool the housing market, sliding home sales and property construction have become a drag on the economy, which recorded its slowest growth in six quarters in the first three months of the year.
"Although some fine-tuning policies have already been introduced by various cities, this would be the first time the market could expect a significant relaxation of the home purchase restrictions," Toni Ho, an analyst at Bocom International, wrote in a report yesterday.
Vanke gained 3.3 per cent in Shenzhen while Poly Real Estate rose 4.3 per cent in Shanghai. China Overseas Land jumped 5.5 per cent while Greentown closed 6.6 per cent higher.
The Ministry of Housing and Urban-Rural Development has allowed most cities to independently adjust curbs, the Southern Weekly reported. Hangzhou, the capital of Zhejiang province, will limit home price cuts, the Qianjiang Evening News reported.