Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

China stocks add to gains on report of more government support for the property market

Published 06/02/2023, 05:52 PM
Updated 06/02/2023, 05:52 PM
© Reuters.

© Reuters.

Chinese equities had a strong day as markets cheered the approval of a deal to raise the U.S. debt ceiling and avert a default. The Hang Seng had its best day in three months while Japan’s Nikkei 225 index hit fresh 33-year highs.

China stocks received a further boost after Bloomberg News reported that the government is considering a new basket of measures to support the property market. Some of the ideas that are discussed include reducing the down payment in some non-core neighborhoods of major cities, lowering agent commissions, as well as further relaxation of constraints for residential purchases, the report added.

"The basic picture was one of regression," Bloomberg Economics and Intelligence analysts Chang Shu and Kristy Hung said recently.

"Despite signs of steadier activity, though, the sector is still sick."

The government has been discussing new measures as the country's two largest real estate developers – Wanda and Evergrande – continue to struggle. The former has been seen selling assets to boost liquidity while the latter is still trying to win support from creditors.

US-listed Alibaba (NYSE:BABA) shares are up 2.2% in pre-market Friday while Pinduoduo (NASDAQ:PDD) gained 3.4%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.