Hong Kong-listed Chinese property developers saw their shares surge on Tuesday, fuelled by optimism over a potential recovery in the sector. The Hang Seng Mainland Properties Index jumped 3.5 per cent by midday, after earlier reaching highs of 4.8 per cent. This surge comes amid signs that a major government support package, launched in mid-May to stabilise the ailing property sector, is beginning to show promise. In June, the sales value of China's top 100 developers increased by 36.3 per cent compared to May, according to CRIC data. Although still down 16.7 per cent year-on-year, this marks a notable improvement from the previous month. The data also highlighted a polarisation within the sector, with state-owned and state-backed firms like China Overseas Land & Investment experiencing year-on-year sales growth in June. Property research firms anticipate an increase in home purchases in the coming months, with the year-on-year decline in July expected to be narrower due to a low sales base from the previous year. Chinese authorities introduced a support package in May to address the property sector's liquidity crisis. The goal is to assist developers in managing debt and stabilising the housing market.
