Beijing, China - October 2, 2024 - Shares of Chinese property developers experienced an unprecedented rally following the Chinese government's decision to relax homebuyer regulations in major cities. This move aims to stabilize the declining property market.
A Bloomberg Intelligence gauge of Chinese real estate stocks surged by as much as 31%, marking a record increase, after the announcement that Beijing would facilitate property purchases for non-residents in key areas and reduce minimum down payment ratios. Over the last five trading days, the index has seen a remarkable rise of 92%.
The easing of these restrictions is expected to have significant implications for the Chinese economy, potentially restoring confidence among investors and homebuyers. The government’s intervention reflects an effort to mitigate the ongoing downturn in the property sector, which has been a critical area of concern for economic stability.
Source: Bloomberg