Shares of Chinese real estate developers took off on Monday, driven up by statements by Prime Minister Li Keqiang referring in particular to a public fund to support this very tested sector.
On the Hong Kong Stock Exchange, shares of real estate groups CIFI Holdings (Group) and Guangzhou R&F Properties rose 12% and 6% respectively.
In Shanghai, Cinda Real Estate, Poly Developers and Gemdale group gained between 3 and 6%.
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Investors warmly welcomed remarks by Li Keqiang, during a ministerial meeting on Friday evening, who pleaded for measures "
that promote the development of a healthy and solid real estate market
", in particular referring to a public fund to bail out promoters in China, without giving details of the arrangements envisaged.
The real estate sector under pressure
The real estate giants have been under strong pressure since Beijing tightened their credit access conditions in 2021 to reduce their debt.
The pandemic and its heavy uncertainties have also reduced demand.
The announcement comes as the giant Evergrande tries to reach a restructuring agreement for its debt estimated at around 300 billion dollars.
On Friday its CEO and its financial director were forced to resign after an internal investigation implicating them.
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After the wave of defaults that hit the sector, the crisis recently took a new turn when buyers began to strike their home loan repayments.
The real estate sector has a very significant weight in the Chinese economy since it represents about a quarter of Chinese GDP.