Hong Kong property stocks jump as China moves to revive property sector
Residential buildings are in the Metro Town development, jointly developed by CK Asset Property Holdings Ltd., Nan Fung International Holding Ltd. and MTR Corp., in Hong Kong, China on Thursday January 11, 2018.
Anthony Kwan | Bloomberg | Getty Images
Hong Kong-listed property stocks surged on Monday, leading the market to gains. Hang Seng Index and make the benchmark the biggest winner in Asia.
Shares of real estate companies like Evergrande, Logan Group And Longfor Group climbed more than 9% on Monday, with Country Garden Properties leading the gains at 14.61% up. The mainland Hang Seng real estate index rose 9.09%.
Over the weekend, Country Garden won approval from its creditors to extend payment of a 3.9 billion yuan ($540 million) onshore private bond, sources and a document seen by Reuters show. .
Bloomberg reported that the company also made a coupon payment on a bond denominated in 2.85 million Malaysian ringgits ($613,000).
Country Garden still has to pay $22 million in coupons on two US dollar bonds it defaulted in early August. The grace period ends Wednesday.
On Friday, China also took steps to revive its real estate sector. The People’s Bank of China has eased some borrowing rules and cut the reserve requirement ratio for foreign currency deposits from the current 6% to 4% from September 15.
Some of China’s biggest banks have also cut interest rates on yuan deposits, including the Industrial and Commercial Bank of China, China Construction Bank Corp and Agricultural Bank of China.
cnbc
