By Jiahui Huang
Chinese property stocks climbed in Hong Kong after Beijing and Shanghai eased policies for home buyers, but analysts are divided on whether the momentum will last.
The Hang Seng Mainland Properties Index, which tracks Chinese property developers, was 4.7% higher at the mid-day break Friday, lifting gains this week to 6.7%. CIFI Holdings rose 8.5% and Agile Group added 6.1%, while Longfor advanced 7.1%. Country Garden Holdings, Sino-Ocean Group, Kaisa Group and Guangzhou R&F Properties all put on more than 5%.
The rally, which helped lift the benchmark Hang Seng Index 3.0% higher, comes a day after China’s two biggest cities took measures to spur homebuying, including by cutting the amount of money required for down payments.
Nomura analysts think the measures will have “marginally positive impact” on local property market sentiment, generating “some demand for housing upgrades in both cities.”
