China property stocks jump on policy, lending boost

[HONG KONG] Chinese property shares surged in Hong Kong, led by Country Garden Holdings as analysts pointed to a mix of policy signals and new lending rules as key drivers of the rally.

A gauge of developer stocks jumped as much as 5.1 per cent, the biggest one-day gain in nearly two months. Top gainers included Country Garden and Shimao Group Holdings, whose shares rose more than 30 per cent. 

The sector’s surge followed gains from the previous day, after Shenzhen joined Beijing and Shanghai in easing home-buying rules to address the property crisis. That momentum may have carried into Tuesday, although fresh catalysts weren’t immediately apparent. 

“Following the home purchase relaxation and mortgage loan easing in three tier-1 cities, the market is speculating this would boost new home sales in these cities in the coming months,” said Jason Chan, senior investment strategist at Bank of East Asia in Hong Kong.

The government is also looking to accelerate work in urban areas, which could help any property backlogs, he added. 

Meanwhile, Jeff Zhang, an analyst at Morningstar, pointed to recent creditor agreements struck by Country Garden, though he noted that attributing the stock moves directly to those developments is “just speculation.” 

Property shares have lagged for much of the year, down about 11 per cent so far in 2025, with scant signs of recovery from the property crisis weighing on the world’s second-largest economy. 

Even after accounting for Tuesday’s gains, Shimao shares are down 63 per cent for the year. Guangzhou R&F Properties has slumped about 46 per cent. BLOOMBERG