Shares of Chinese property developers rallied most on record after Beijing joined its peers to ease rules for homebuyers, following the Asian nation’s call to stem the property market decline, Bloomberg News reported. A Bloomberg Intelligence gauge of Chinese real estate stocks surged as much as 31% — a record — on Wednesday, following the Monday announcement that the nation’s capital will make it easier for non-residents to buy property in core areas and cut minimum down payment ratios. The index has risen 92% over the last five trading days.
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The United States is raising new concerns about China’s practice of making emergency loans to debt-ridden countries, warning that a lack of transparency surrounding such financing can mask the fiscal predicaments facing fragile economies that have turned to China for help, the New York Times reported. A senior Treasury official, Brent Neiman, will publicly air concerns about the practice on Tuesday during a speech in which he will urge the International Monetary Fund to push China for greater clarity about its lending terms.
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Top Chinese cities Shanghai and Shenzhen are planning to lift key remaining restrictions on home purchases to attract potential buyers and shore up their flagging real estate markets, four sources with knowledge of the matter said, Reuters reported. Under the planned changes, potential buyers will no longer have to be vetted for eligibility and people from other places in China will be allowed to buy homes in the popular cities, which had been previously tightly controlled due to worries about excess speculation.
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Liquidators of debt-laden China Evergrande are still in talks with a potential buyer to sell a stake in the electric vehicle arm of the company with a view to provide a new credit line to support production, Reuters reported. In its initial days, the electric vehicle (EV) maker aimed to take on Tesla and had a market valuation higher than Ford Motor, but it has since been mired in the debt crisis engulfing its property developer parent.
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First it was the central bank. Now China's top political leaders are pledging to shore up the country's moribund economy and, in particular, its battered property sector, The Wall Street Journal reported. Here's how markets reacted to the Politburo's intervention. In New York, the Nasdaq Golden Dragon Index jumped nearly 10%. U.S.-listed Chinese stocks such as Alibaba, JD.com and PDD surged. Yum China, which operates KFC in the country, rocketed 17% higher. Hong Kong's Hang Seng Index advanced 4.2%, notching its highest close since August 2023.
China’s leaders have been drip-feeding support into their ailing economy for three years. This week, they jacked up the dose, according to an analysis in The Wall Street Journal. A major injection of stimulus from the central bank — and promises of more government support from the Communist Party’s top decision-making body — mark the beginning of a more muscular approach from Beijing to righting the economy after months of hesitancy, economists say.
China’s central bank announced a series of measures on Tuesday aimed at making it easier for households and companies to borrow money, in the boldest attempt by the Chinese authorities since the pandemic to revive economic growth, halt a housing market crash and stop a broad decline in prices, the New York Times reported. The central bank, the People’s Bank of China, cut short-term interest rates and rates on existing mortgages, reduced minimum down payments for housing purchases, and freed the country’s state-controlled commercial banks to lend a larger proportion of their assets.
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China's central bank on Tuesday unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government's growth target, but analysts warned more fiscal help was vital to hit these goals, Reuters reported. The broader-than-expected package offering more funding and interest rate cuts marks the latest attempt by policymakers to restore confidence in the world's second-largest economy after a slew of disappointing data raised concerns of a prolonged structural slowdown.