By Jiahui Huang
Chinese property stocks rose sharply as markets bet on more property-sector stimulus to come after a major city sought comment on policies targeting consumption.
The benchmark Hang Seng Mainland Properties Index rose 2.1% to 1355.98 on Monday morning, while the broader Hang Seng Index fell 0.1%.
Guangzhou R&F Properties jumped 11% and Shimao Group was up 8.2%. Sunac China and Sino-Ocean rose 8.5% and 8.7%, respectively. China Vanke gained 4.5% and Seazen Group rose 4.0%.
The stock gains came after Guangzhou, one of China's largest cities, on Thursday released a statement seeking public opinion on measures to boost consumption.
The Guangzhou city government said in the Thursday notice that local authorities plan to remove restrictions on home buying and price controls.
"We see this as a clear positive, driving price upside in the new homes market," HSBC Global Research analysts said in a note.
The HSBC analysts think other cities may follow suit, which has strengthened market expectations for more stimulus in the run-up to the July Politburo meeting.
The removal of price controls in Guangzhou could result in price cuts for older housing inventory and speed up cash collection for property developers to digest excess inventories, HSBC said.
Data on Monday showed home prices fell at a faster pace in major Chinese cities in May.
New home prices dropped 0.22% last month from April, widening from the 0.12% decline in April, according to calculations by The Wall Street Journal based on data from the National Bureau of Statistics.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
June 16, 2025 00:08 ET (04:08 GMT)
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