China’s E-House Jumps 29% as Volume Surges in New YorkBelinda Cao
E-House China Holdings Ltd., a real-estate brokerage based in Shanghai, surged the most in eight months in U.S. trading as volume soared.
Its American depositary shares jumped 29 percent to $6 in New York, the highest close since May 2012. Trading volume was almost nine times the daily average over the past three months, data compiled by Bloomberg showed. E-house has jumped 46 percent this year.
Analysts at Zheshang Securities Co. and Mizuho Securities Asia Ltd. said China’s regulators were moving toward easing curbs on real estate fundraising, after an Aug. 9 statement issued by the nation’s securities regulator elaborated on conditions for allowing financing by developers. The Financial News daily, controlled by the central bank, published an article today saying the nation may adjust property financing policies.
“Developers in China are being allowed to raise funds again, adding another positive sign to the industry’s growth outlook,” Ella Ji, an analyst at Oppenheimer & Co. in New York, said by e-mail today. “We anticipate EJ will report solid 2Q results on Friday. In addition, its peer company SouFun had a great run recently. It’s possible that EJ is catching up.”
E-House is scheduled to report its second-quarter results before U.S. markets open on Aug. 16. Sales may increase 20 percent from a year earlier, according to the average projection of two analysts compiled by Bloomberg. SouFun Holdings Ltd., China’s biggest real estate information website, has surged 50 percent in the past month.