Dow Jones Newswires: Chinese property stocks jump amid technical recovery, hopes of sales rebound
Shares of major Chinese property developers jumped in Hong Kong on Tuesday as the sector picked up from earlier losses amid growing hopes for a sales rebound this year.
Both Shimao Group Holdings Ltd. 813, +11.58% and China Aoyuan Group Ltd. 3883, +11.03% surged as much as 13% while Guangzhou R&F Properties Co. Ltd. 2777, +8.59% soared 9.6%. Greentown China Holdings Ltd. 3900, +6.57% gained up to 7.7% after the developer said it will redeem $500 million worth of bonds, a signal it has ample financial resources.
Analysts said the upturn is likely a technical recovery from steep losses on Monday, when official data showed a sharp drop in China’s December property sales. The data also suggested that many listed companies suffered their first-ever full-year sales contractions last year.
But the sector’s outlook may brighten in 2022, analysts said, as Beijing gradually softens its tight policy controls. Both local, city-level home-buying support measures as well as improving financing policies for developers nationally should help improve sector liquidity and support sales, Jefferies said in a recent research note.