Vanke Leads Rally by Chinese Developers on Loosening Speculationby
China Vanke Co. jumped the most in five months and a gauge of real estate stocks in the country rallied on speculation the government will take steps to bolster home sales.
Vanke climbed as much as 11 percent in Hong Kong trading before paring gains to 2.7 percent at the close, while the Shanghai Stock Exchange Property Index advanced for a third day. Companies reliant on consumer spending including Gree Electric Appliances Inc. and SAIC Motor Corp. also rallied. The Shanghai Composite Index gained 2.3 percent.
“Easing expectations are having a positive impact on property stocks,” said Castor Pang, head of research at Core-Pacific Yamaichi Hong Kong.
China’s home-price recovery slowed in October, as a supply glut in less-prosperous cities challenges the authorities’ efforts to revive the residential market with interest-rate cuts and easing of mortgage restrictions. The number of unsold new homes nationwide increased 14 percent to 437 million square meters (4.7 billion square feet) as of Oct. 31 as the pace of home sales slowed, the statistics bureau said earlier this month.
Vanke extended a two-day, 9.2 percent advance. The Shanghai property gauge rose 3.6 percent, with Poly Real Estate Group Co. climbing by the 10 percent daily limit for a second straight day. Gree Electric, which makes air conditioners, also gained by the maximum permitted, while SAIC Motor rallied 5.4 percent.