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在线翻译:
szdaily -> Business -> 
Property stocks jump on new policies
    2022-11-15  08:53    Shenzhen Daily

CHINESE property stocks and bonds soared yesterday as the market cheered the government’s “most comprehensive” support measures aimed at boosting liquidity in the sector in its latest attempt to stabilize a key pillar for the world’s second-largest economy.

The package, which sources say lays out multiple financing measures for the industry, was hailed by analysts as a “turning point.” China’s property sector accounts for a quarter of the economy.

Previous efforts by policymakers to help ease the cash crunch have done little to bolster the property market.

The Hang Seng Mainland Properties Index jumped more than 13.5% to close at a two-month high, with the share prices of many mainland property developers posting double-digit gains.

Country Garden rallied 45.5% to hit an over three-month high. Logan Group, KWG Group, Agile Group and R&F Properties all rose more than 30%.

A dollar bond of defaulted Yango Group due 2023 rose 1.787 cents on the dollar to 2.712 in early trade yesterday, according to data from Duration Finance. Powerlong Real Estate’s April 2025 bond was traded at 9.275 cents, 3.055 cents higher than Friday. Their bonds also surged onshore.

The gains offer a sign of optimism that the real estate sector may soon see a bottom after the government is said to be preparing an extensive package aimed at easing developers’ liquidity strains and reviving home purchases.

Sources said Sunday a notice to financial institutions from the People’s Bank of China and the China Banking and Insurance Regulatory Commission (CBIRC) outlined 16 steps to support the property sector, including loan repayment extensions.

Meanwhile, the CBIRC on Friday issued a notice allowing commercial banks to issue letters of guarantee to real estate firms for escrow pre-sale housing funds.

The notice “introduced by far the most comprehensive set of support measures for the property market,” Citi said.

Jefferies estimated the package, together with other recent policies, would inject around 1.3 trillion yuan (US$183.83 billion) credit into the property sector, largely covering private developers’ public bonds and trust products due to mature by end-2023.

Last week, the National Association of Financial Market Institutional Investors said it would widen a program to support about 250 billion yuan worth of debt sales by private firms, including property developers.

In a statement released yesterday, the CBIRC said it will grant “quality” developers access to as much as 30% of pre-sale funds with letters of guarantee from lenders, a move aimed at alleviating liquidity risks. (SD-Agencies)

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