While following the reports of new agreements to prevent debt defaults, shares in major developers rose.
Sunac, as a result of receiving approval to restructure $9 billion in offshore notes, China’s stock price increased by as much as 14%.
But after learning that company had applied for bankruptcy protection in the US, it then finished the day down 4%.
Large, cash-strapped Country Garden also received permission to postpone repayment on further bonds.
But after the Sunac revelations, its stock likewise lost some of its early gains and finished down more than 2%.
The announcement from Tuesday comes as Beijing intensifies its efforts to promote the real estate industry, which makes up around 25% of the national GDP.
Among them were steps to lower borrowing rates and support first-time homebuyers.
However, despite all of that, home prices across the nation are still falling.
According to the most recent statistics, new home prices dropped in August at their quickest rate in 10 months.
Sales and investment declines in real estate also widened.
Despite predicting that any recovery in the real estate market would be gradual and modest, one expert told Reuters that Beijing’s stimulus measures will have some impact.
- Published By Team Hongkong Journalist