China Property Shares Surge on Relaxed Buying Restrictions, According to Reuters

Shares of property developers in China experienced a significant surge on Monday following the announcement that major cities like Guangzhou lifted all home purchase restrictions. Additionally, Shanghai and Shenzhen revealed plans to ease key buying restrictions over the weekend.

The Mainland Properties Index in Hong Kong climbed by more than 10%, while the mainland’s CSI 300 Real Estate index rose by approximately 9%.

In a move to bolster the struggling property market as the economy faces challenges, China’s central bank stated on Sunday that it would instruct banks to reduce mortgage rates for existing home loans before October 31. This initiative is part of broader policies aimed at supporting the beleaguered sector.