Mainland property stocks advanced once more in Hong Kong trading. At the time of writing, Greentown China (03900) rose 6.45% to HK$11.22; Sunac (01918) climbed 6.19% to HK$1.2; CHINA JINMAO (00817) increased 6.71% to HK$1.75; and SEAZEN (01030) gained 4.44% to HK$2.59.

On the news front, on February 2, China Construction Bank supported the signing of Shanghai's first batch of projects to acquire second-hand homes for conversion into public rental housing, marking the substantive launch of this initiative in the city.

At the signing ceremony, relevant branches of CCB's Shanghai division entered into cooperation agreements with public rental housing companies in Pudong New Area, Jing'an District, and Xuhui District—the three pilot zones—to provide financial backing for the acquisition program.

Goldman Sachs released a research note stating that recent reports indicated several property developers have confirmed that central regulators no longer require monthly submissions of the "three red lines" metrics.

The investment bank's discussions with several developers revealed that such monthly reporting had actually been suspended a year ago.

The mainland property sector's rise on the back of this news reflects that, while a recovery in housing demand remains distant, liquidity injections continue to be the core driver for boosting sector stock prices in the short term.