Investing.com– Chinese property stocks surged on Thursday after a report said authorities were easing implementation of the sector’s long-standing “three red lines” leverage restrictions, boosting hopes of further policy support for the struggling industry.
A Cailian Press report late Wednesday showed that regulators may no longer require some firms to submit monthly data under Beijing’s stringent “three red lines” deleveraging framework, citing industry sources.
Property shares surged in response. In Hong Kong, skyrocketed nearly 30%, while climbed over 20% and advanced more than 15%.
rose 10%, while added roughly 8%.
Hong Kong’s index climbed 0.5%, despite broader market weakness.
Mainland-listed developers also rallied, with several A-share property stocks hitting their daily trading limits.
The “three red lines” policy was introduced in 2020 to curb excessive borrowing and has since weighed heavily on developer financing and sales.
The reported adjustment was seen as another step by Beijing to stabilise the property sector and support economic growth.