The property sector of listed Chinese firms in the Hong Kong Exchange surged on Tuesday, sending positive sentiment across the region after the report that Chinese regulators are drafting a list of 50 developers eligible for funding.
Sunac China Holdings Ltd. is leading the sector in the afternoon session with a gain of nearly 19%. The share price went up as much as 27% intraday. Seazen Holdings is trading about 10% higher, while Country Garden hiked 6.5%. Even China Evergrande rose by nearly 2% as well.
Other developers such as Longfor Group, China Vanke, China Jinmao, Agile Group and Logan Group all surged about 4-6%.
It was reported earlier that Chinese authorities are drafting a list of 50 real estate firms that would be eligible for financing. This will be the latest move by Beijing to revive its slumping property sector.
Sunac China Holdings said that the company has started executing its plans to overhaul its debt after getting an approval from creditors on its offshore debt restructuring plan in September.
It remains to be seen how much this measure will help the debt-piling property developers in China. There has yet to be a report for the banking sector in loan extension for real estate companies.
This positive sentiment has supported the overall market condition in the region on Tuesday as major indices such as Nikkei, SSEC, HSI, KOSPI and ASX 200 were all trading in a positive territory.
Thailand’s SET Index closed the morning session at 1,425.39 points, increased 5.95 points or 0.42%.