Real Estate

Chinese real estate stocks rise as Beijing extends property support measures

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A crane with the China Vanke logo at a residential construction site in China, on Sept. 28, 2021.
Qilai Shen | Bloomberg | Getty Images

Chinese real estate stocks mostly rose after the country announced it will extend two financial policies to support the real estate market until the end of 2024.

Hong Kong-listed real estate stocks saw large gains. Logan Group led the sector, advancing almost 3%, while Country Garden Holdings climbed about 0.67%, and China Vanke Co gained 1.2%. However, the CSI 300 Real Estate Index fell 0.44%, paring gains from earlier.

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Reaction from Chinese banks were muted. Hong Kong-listed shares of China Construction Bank were flat, ICBC was up 0.28% and Bank of China also flat.

In November, China’s financial authorities rolled out a 16-step guideline to shore up its housing sector, and “relevant policies” will now be now extended to the end of 2024, the People’s Bank of China announced.

Xinhua reported that the move is to “guide financial institutions to continue deferring loan payments for real estate enterprises, while propping up financial support for the real estate enterprises to ensure the delivery of housing projects.”

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