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Dec. 27, 2018, 10:10 p.m. EST

Chinese property stocks have surged in fourth quarter

China has eased efforts to cool its hot property market

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By Joanne Chiu


Bloomberg News
Waterfront properties in Zhuhai, China.

Major Chinese property stocks have rebounded in the fourth quarter as Beijing works to stabilize the sector.

Shares of major Chinese developers listed in Hong Kong and on the mainland have recovered after hitting a trough in October. China Resources Land Ltd. /zigman2/quotes/202417326/delayed HK:1109 -1.26%   has led with a gain of nearly 8% and China Overseas Land & Investment Ltd. /zigman2/quotes/205731176/delayed HK:688 -2.34%   has advanced almost 6%. Both companies are state-backed.

China Evergrande Group /zigman2/quotes/208605330/delayed HK:3333 -1.38%  , the country’s largest property developer by market value, has risen more than 4% while rival Sunac China Holdings Ltd. /zigman2/quotes/206127839/delayed HK:1918 -3.03%   edged up 1%, outperforming the benchmark Hang Seng Index’s /zigman2/quotes/210598030/delayed HK:HSI -1.09%   losses of about 8.3% in the fourth quarter so far.

China’s moves to cool its red-hot property market pressured some indebted developers. But the situation has eased this quarter, with some cities relaxing rules on presales of properties, according to local media reports, and some banks offering cheaper mortgages to stimulate demand. Property is a major pillar of the economy and is crucial to Beijing’s drive to boost consumption. In addition, China has loosened curbs on real-estate firms raising money or refinancing debt, both onshore and off, said Mandy Chan, an investment director at HSBC Global Asset Management. In November, developers raised nearly $8.8 billion selling bonds at home and abroad, up 22% from October, according to Dealogic. The value of offshore issuance nearly doubled and that included deals from Evergrande and Sunac.

An expanded version of this report appears on WSJ.com.

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/zigman2/quotes/202417326/delayed
HK : Hong Kong
HK$ 35.15
-0.45 -1.26%
Volume: 11.74M
Feb. 21, 2020 4:08p
P/E Ratio
7.55
Dividend Yield
3.57%
Market Cap
HK$253.86 billion
Rev. per Employee
HK$3.68M
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/zigman2/quotes/205731176/delayed
HK : Hong Kong
HK$ 27.10
-0.65 -2.34%
Volume: 19.31M
Feb. 21, 2020 4:08p
P/E Ratio
6.37
Dividend Yield
3.51%
Market Cap
HK$304.04 billion
Rev. per Employee
HK$30.79M
loading...
/zigman2/quotes/208605330/delayed
HK : Hong Kong
HK$ 18.56
-0.26 -1.38%
Volume: 8.18M
Feb. 21, 2020 4:08p
P/E Ratio
9.91
Dividend Yield
8.50%
Market Cap
HK$249.15 billion
Rev. per Employee
HK$4.12M
loading...
/zigman2/quotes/206127839/delayed
HK : Hong Kong
HK$ 41.65
-1.30 -3.03%
Volume: 30.59M
Feb. 21, 2020 4:08p
P/E Ratio
7.79
Dividend Yield
2.26%
Market Cap
HK$199.35 billion
Rev. per Employee
HK$6.26M
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
27,308.81
-300.35 -1.09%
Volume: 1.77M
Feb. 21, 2020 4:08p
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