China's Property Stocks Could Rise More With the Right Policy Support -- Market Talk

Dow Jones
02/02

0720 GMT - China's property stocks could rise further with the right policy support, according to HSBC analysts in a research note. They note that property stocks rose Friday on factors including reports regulators may discontinue the "Three Red Lines" requirement and early signs of stabilisation in the secondary market, the analysts say. "Three Red Lines" requires developers submit a key set of metrics as part of efforts to regulate a buildup of debt. The potential removal of the requirement signals an end to the government's restrictive approach that has challenged the sector since 2021, they note. "What the market needs now is a consistent dose of targeted policies to revive near-term sales volume," they say. The analysts prefer China Resources Land, C&D International Investment Group and Seazen Group. (tracy.qu@wsj.com)

 

(END) Dow Jones Newswires

February 02, 2026 02:20 ET (07:20 GMT)

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