© Reuters. FILE PHOTO: Workers at a residential building under construction in Shanghai, China, October 10, 2022. REUTERS/Aly Song
By Clare Jim
HONG KONG, July 11 (Reuters) – Shares of Chinese property developers rose on Tuesday after regulators extended some economic policies in a rescue package introduced in November to shore up liquidity in the troubled sector.
Analysts noted that while further support could ease short-term financial pressure on property developers and ensure the completion of their real estate projects, further measures would be needed to address the sector’s liquidity crunch.
The sector has been affected by numerous defaults by companies in a context of debt crisis since mid-2021, triggered by defaults in China Evergrande (HK:) Group, the world’s most indebted property developer.
The central bank announced on Monday that it would give developers an additional 12 months to repay loans due this year, while many private companies continue to struggle to access new capital despite aggressive support measures by leaders. economic.
Markets expect more stimulus measures to follow soon.
By 0316 GMT, Hong Kong’s Mainland Properties Index was up 1.8%, while China’s Real Estate Index was up 0.1%.
Hong Kong-listed Sunac China, Logan Group and KWG Group were among the most bullish stocks, up 4-5%.
Last November, the People’s Bank of China (PBOC) launched 16 support measures for the liquidity-strapped sector, including loan repayment extensions, to alleviate a deepening liquidity crisis. deep.
On Monday, the PBOC said it would allow loans due this year to be repaid before the end of 2024.
On the other hand, it said that the risk ratings of loans issued to support the delivery of projects not completed before the end of 2024 will not be lowered during their loan terms.
(Reporting by Clare Jim; Editing by Himani Sarkar and Sonali Paul, Spanish editing by José Muñoz)
2023-07-11 08:09:13
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