China property stocks surge as Beijing unveils measures to boost the sector

After Beijing announced additional measures to support the struggling sector over the weekend, China's real estate stocks surged.

In volatile trading, the Hang Seng Mainland Properties Index increased by more than 2%, while the Hang Seng Index fell by 0.4%. The largest mover in the HSMPI, China Resources Land, increased 7.6%.

Significant increases were also seen in the shares of other real estate developers, including as Yuexiu Property and China Overseas Land & Investment, which saw rises of roughly 6% and 7%, respectively.

The surge followed the announcement of new policy measures by China's Ministry of Finance aimed at stabilizing the struggling real estate market.

At a much-awaited news conference, senior authorities announced that local governments will be permitted to issue additional special bonds to purchase land and unsold home inventories from developers.

Tommy Xie, managing director and head of Asia Macro Research at OCBC Bank, stated in a note that the goal of this policy is to control the land market's supply-demand balance, decrease idle land, and lessen the financial strain on developers and local governments.

Law cautioned that investors should wait for more information on how the plans would be implemented, but said that market mood may improve in the near future as a result of Beijing's policy focus.