From Caixin Global: 2024-05-16 16:13:17

Chinese developers’ shares surged following news of potential policy support from Beijing to buy unsold homes, with a Bloomberg gauge of real estate stocks rising by up to 10.7%. Plans for local governments to purchase millions of unsold homes could signal a significant effort to revive the struggling property market.

Although details of the plan are still under discussion, investor excitement is evident amid concerns about unsold inventory. Drops in new-home prices and sales have highlighted the challenges faced by the real estate sector. Analysts believe the proposed measures could address issues of excess inventory and provide liquidity to developers.

Amidst the ongoing efforts to support the real estate sector, the optimism surrounding the potential purchase of unsold homes is seen as a crucial step in reviving the property market. Estimates suggest around 1.8 trillion yuan would be needed to acquire five million units from developers, with some companies experiencing significant gains in their share prices.

Editor Michael Bellart oversaw the release of this information, highlighting the unfolding developments in China’s real estate sector. The proposed measures aim to tackle the existing challenges faced by developers and provide a much-needed boost to the property market. Investor sentiment remains positive as Beijing considers further support for the industry.



Read more at Caixin Global: China Property Stocks Gauge Jumps on Proposal for Home Purchases