© Reuters. FILE PHOTO: Workers work at a construction site, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China, October 14, 2022. REUTERS/Aly Song
HONG KONG (Reuters) – Chinese property stocks soared on Monday as the market cheered a new aggressive financing package outlined by Chinese regulators to shore up the liquidity of its embattled property sector, with the shares of many major companies surging over 14%.
Large property developers Country Garden, Longfor Group, CIFI Holdings and Greentown China all jumped close to 15% at market open. The Mainland Properties Index gained 9.7%.
Two sources told Reuters a notice to financial institutions from the People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) outlined 16 steps to support the industry, including loan repayment extensions, in a major push to ease the deep liquidity crunch which has plagued the property sector since mid-2020.
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