Chinese property stocks and bonds soared on Monday as the market cheered Beijing’s “most comprehensive” support measures aimed at boosting liquidity in the sector in its latest attempt to stabilize a key pillar for the world’s second-largest economy.
The plan comes nearly a month after Chinese President Xi Jinping secured his third term at the helm of the ruling Communist Party at a time when the economy faces a series of headwinds including China’s zero-COVID strategy, a property slump and global recession risks. A dollar bond of defaulted Yango Group due 2023 rose 1.787 cents on the dollar to 2.712 in early trade, according to data from Duration Finance. Powerlong Real Estate’s April 2025 bond was traded at 9.275 cents, 3.055 cents higher than Friday. Their bonds also surged onshore.
Jefferies estimated the package, together with other recent policies, would inject around 1.3 trillion yuan credit into the property sector, largely covering private developers’ public bonds and trust products due to mature by end-2023.