Mainland Chinese property stocks surged during the late trading session. At the time of writing, China Vanke (02202) rose 3.76% to HK$3.86; Country Garden (02007) increased 3.57% to HK$0.29; Logan Group (03380) climbed 3.05% to HK$1.35; and Sunac China (01918) advanced 1.6% to HK$1.27. The moves came as Vanke's US dollar bond due in November 2029 is set to record its largest gain since January 27, 2025. As of 2:30 PM Beijing time, the company's 3.5% bond rose 5.7 cents to 38.7 cents per dollar. Its 3.975% bond due in November 2027 increased by 3.3 cents to 37.5 cents per dollar.

Notably, Shanghai has recently advanced a program to purchase existing homes from the secondary market. Oriental Securities stated in a research report that, following a significant adjustment in housing prices, Shanghai's pilot program to market-purchase older, smaller homes provides an exit channel for specific assets and helps reshape price anchors, contributing to price expectation stability. If the scope of the purchase program expands in the future, it could establish a credit backstop leverage and significantly improve market confidence. Signals to stabilize expectations have continued to strengthen since the beginning of 2026, with attention recommended on the pace and intensity of relevant policy introductions this year. The specific timing is expected to be counter-cyclical, depending on the degree of weakness in fundamental conditions.