China's property sector witnessed a dramatic turnaround on Monday, with shares of major developers surging on the back of relaxed home purchase regulations and the government's latest stimulus package. The move aims to boost confidence in the long-depressed industry and the broader economy. Last week, China's Politburo pledged to achieve the targeted 2024 economic growth of roughly five per cent and halt the decline in the housing market. This commitment followed the central bank's announcement of its biggest stimulus package since the pandemic. The positive policy signals fueled optimism among investors. Reflecting the improved market sentiment, Hong Kong's Hang Seng Mainland Properties Index surged over eight per cent by midday, while the mainland's CSI 300 Real Estate index climbed 7.6 per cent. Notably, the Hong Kong sub-index has witnessed a remarkable 40 per cent increase since the central bank's recent support measures were announced last Tuesday. Guangzhou became the first major city to eliminate all restrictions on home purchases last Sunday. Meanwhile, Shanghai and Shenzhen implemented measures to ease curbs on non-local buyers and lowered the minimum down payment requirement for first-time homebuyers to no less than 15 per cent. These supportive measures reportedly led to quick sellouts of new launches in major cities, prompting some developers to raise selling prices. Attribution: Reuters Subediting: M. S. Salama
