Shanghai Announces Measures to Support Property Market Transactions Amid Weak Demand and High Prices

Li Chen
28 May, 2024
Hong Kong

Benchmark indexes in Shanghai and Hong Kong attempted to trade higher after the Shanghai government announced measures to support local property market transactions. 

Shanghai authorities announced several measures to revive property market transactions and became the first tier-1 city as the central government offers financial incentives for regional governments as a part of a national plan. 

Shanghai lowered down-payment requirements and mortgage interest rates for first-time home buyers, permitted families with more than one child to purchase additional houses, and eased property purchase restrictions for out-of-city residents. 

The moves are designed to encourage buyers to acquire additional properties and increase liquidity for property developers. 

However, these measures are likely to fall short as buyers struggle with affordability issues amid sky-high house prices and job market uncertainty. 

The CSI 300 index and the Hang Seng index jumped nearly 1% in early trading but lost momentum in afternoon trading. 

 

China Stock Movers 

The CSI 300 index decreased 0.4% to 3,620.25, and the Hang Seng index edged up 0.04% to 18,829.03. 

China Vanke declined 1.3% to HK$6.03 after the state-controlled residential property developer agreed to sell an unfinished project for 2.24 billion yuan, or $309 million, and the company is likely to take a loss of 1.8 billion yuan. 

China Vanke sold the plot of land to its largest shareholder, Shenzhen Metro, and Baishuo Investment, and the land was acquired in December 2017 with the plan to build the company's headquarters for 3.1 billion yuan. 

Longfor Group decreased 1% to HK$13.48, and China Resources Land was nearly unchanged at HK$30.55. 

Semiconductor stocks traded higher after Beijing announced the setting up of a $47.5 billion investment plan to achieve self-sufficiency in advanced semiconductor production. 

SMIC gained 0.5% to HK$16.36, and Hua Hon Semiconductors jumped 0.4% to HK$19.86. 

Alibaba Health Information Technology soared 10.4% to HK$3.40 after the company reported annual income rose 65% from a year ago in its latest financial year ending in March.