China Property Stocks Jump

Chinese real estate developers rallied sharply on Friday after official data showed house prices rose at their slowest pace so far this year.

China real estate stocks Poly Real Estate and China Vanke initially eased after the data was released, but later rebounded and were up nearly 6 percent and near 4 percent, respectively, by mid-morning in Asia. Meanwhile Beijing North Star rose 1.2 percent and Gemdale rose 0.6 percent.

Analysts told CNBC investors took the as an encouraging sign that policy makers would likely ease restrictions on the sector.  “If the Chinese economy is really going to grow 7.5 percent, which is the government’s target, then they will likely relax further these home purchase restrictions to stabilize the economy and help them achieve the target,” said Francis Cheung, head of China and Hong Kong strategy, at research house CLSA.

CNBC

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