Evergrande share prices surge 82% Wednesday, as investors pin hope on property rejuvenation
Published: Sep 06, 2023 05:48 PM
real estate Photo:VCG

real estate Photo:VCG

Chinese real estate developers saw their shares soar on Wednesday, with the troubled Evergrande Group leading the upsurge with company shares rising more than 80 percent in trading prices at the Hong Kong stock market. 

Investor enthusiasm is boosted by an expected "busy season" for property sales in September and October, as the authorities have announced growth-reinforcing policies to bolster the development of the important industry.

Evergrande closed up by 82.86 percent to HK$0.64 ($0.082) per share. Sunac China Holdings, another major developer, closed up by 68.35 percent to HK$2.66 on Wednesday, rising for the third straight trading session.

Country Garden, the largest developer by sales, closed up by 13 percent to HK$0.016. On Wednesday, Country Garden made interest payments totaling $22.5 million on bonds that sold in US dollars, averting a default, the Securities Times reported.

Recently, all of the country's four first-tier cities, including Beijing, Shanghai, Guangzhou and Shenzhen, have all announced to implement a new policy in which homebuyers and their immediate family members will be treated as first-time home-buyers eligible for favorable loans, regardless of their mortgage record, sending a strong signal that the country is determined to rejuvenate its property sector.

The government agency of Shanghai property transaction center held a meeting with major real estate dealers on Monday to know about the effect of the new policy, including new homebuyers, the amount of homes for sale, as well as home price fluctuations, domestic news outlet reported.

The real estate market in China's first-tier cities has witnessed some revival signals following the policy adjustment. Some property dealers are reportedly prolonging their business hours to cope with an influx of customers, and a number of dealers have reported a doubling of daily transaction volume, the Global Times learned on Sunday.