China real estate stocks soar

Evergrande shares jumped more than 80% in Hong Kong today, while Country Garden gained nearly 30%.

Chinese real estate stocks soared on September 6 after Country Garden paid off two $22.5 million bond interest payments on September 5. The payments were due in early August, and the payment before the grace period ended helped the company avoid default.

Shares of the debt bomb Evergrande rose 82% at one point on the Hong Kong Stock Exchange. They closed the session up 65%. Country Garden shares rose 26%. Logan Group rose 28%.

Real estate was also the biggest gainer in the Hang Seng Index today. The index tracking mainland Chinese real estate firms listed in Hong Kong rose 4%.

China’s real estate sector has yet to recover from Evergrande’s 2021 default. Last week, the company’s shares returned to trading after a 17-month hiatus and closed down 80% in their first session. Yesterday, Evergrande shares closed at just HK$0.35.

Shares of other developers have also plunged this year on concerns about the spillover effects. Country Garden is down 53%, while Logan is down 18%.

Today, China's Securities Times published a commentary calling for "restrictions on home purchase policies in cities" to be removed as soon as possible.

The paper said that "in the context of major changes in the supply-demand relationship in the real estate market, it is no longer appropriate to maintain policies introduced to tighten speculation." Securities Times urged authorities to increase support to boost sales, thereby releasing pent-up demand due to "rigid" policies.

Ha Thu (according to CNBC)

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