Chinese Developers Rise on Central Bank Pledge for Loans: Shanghai Mover
Chinese developers, including KWG Property Holding Ltd. and Shimao Property Holdings Ltd., rose for a second day after the nation’s central bank this week pledged to meet demand from first-home buyers seeking loans.
KWG climbed as much as 15 percent to HK$3.96 and was 9.1 percent higher at the midday break in Hong Kong, taking its two- day gain to 19 percent. Shimao advanced 9 percent to HK$9.56, rising 16 percent in two days. Eight of the 10 best performers on the MSCI China Index were developers.
Officials will increase support for construction of affordable housing and ensure that “loan demand from first-home families” is met, the People’s Bank of China said on its website Feb. 7. The central bank’s comment echoed a statement that Housing Minister Jiang Weixin made in December, when he said China would prioritize loans for first-home buyers and support reasonable property purchase demand.
The index of developers listed in Shanghai gained as much as 2 percent and was trading 1.4 percent higher at the 11:30 a.m. lunch break. China Vanke Co., the nation’s biggest publicly traded developer, rose 1.6 percent in Shenzhen trading.
Greentown China Holdings Ltd. (3900) extended yesterday’s gain in Hong Kong after saying it raised 3.73 billion yuan ($592 million) through project sales since December. Greentown rose as much as 11 percent to HK$4.45, heading for a 13 week-high.
Greentown plans to sell more projects this year and doesn’t have any plans to sell bonds, Chief Financial Officer Simon Fung said in a telephone interview today.
In Hong Kong, China Overseas Land & Investment Ltd., rose 3.5 percent, while China Resources Land Ltd. jumped 6.5 percent.
The Shanghai property index fell 18 percent last year as the Chinese government limited mortgages and restricted home purchases to rein home prices on concern an asset bubble in the real estate market could derail economic growth. The index has gained 6 percent so far this year.
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