On the expectation that authorities might add support for the ailing property sector at a key economic meeting next week, Chinese property shares rallied on the back of expectations that they might add support for the ailing property sector.
A Bloomberg gauge of the sector gained 4.5% as of 10: 18 a.m. in Hong Kong, with KWG Group Holdings Ltd. and Logan Group Co. rising more than 12% each. The Hang Seng China Enterprises Index erasing most of its earlier 1.5% gain, the broader market was largely flat.
The real-estate industry, whose yearslong slump has made a pall on the broader economy, has been stepped up by Chinese authorities. Over the past month, stocks have gone up thanks to the policy support and the nation s rapid dismantling of some of the harshest Covid restrictions.
According to Bloomberg News, officials will play down the significance of housing is for living and not for speculation and aim to reverse the downward trend in the property sector during the annual Central Economic Work Conference next week.
Read: China Mulls More Property Easing at the Economic Meeting Next Week
The stance would add to a number of measures taken over the past few weeks to ease builders' liquidity crunch, including lifting a major equity fund raising ban.
Hong Kong loosens Covid rules as the government shortened the isolation period for Covid patients is a cause of bullish sentiment. The casino city of Macau has relaxed its testing requirements for Chinese visitors.
The Hang Seng gauge of Chinese shares has gained nearly 5% this week despite Friday s modest moves. The Bloomberg gauge of Macau casino stocks has gone up more than 23% during the period.
China's economic growth will keep picking up as the government implements the changes to Covid control policies, the outgoing Premier Li Keqiang said on Thursday.
Premier Li Says China's growth will rebound due to Covid policy change.
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