Chinese property stocks surged on Friday after the People’s Bank of China vowed to pledge more financial resources to support the private economy.
Hong Kong-listed shares of real estate developers like Country Garden Holdings, Longfor Group Holdings, and China Resources Land were some of the top gainers on the Hang Seng index. Longfor gained as much as 8.19% and Country Garden Holdings surged 6.2%, before paring some gains.
The broader Hang Seng Mainland Properties Index rose as much as 4.76%, but later moderated its gains.
The PBOC meeting on Thursday was attended by representatives of eight companies, including Longfor and Country Garden, the central bank said in a statement. Other attendees included diary giant Yili Group, aluminum products manufacturer China Hongqiao Group and electrical components manufacturer Chint Group.
At the symposium, PBOC governor Pan Gongsheng said the central bank will promote the expansion of private business bond financing support instruments, and strengthen the financial market to support their development.
This is the latest move by the central government to boost market confidence and vow support for private businesses and the real estate sector amid signs of slowing growth.
At the Politburo meeting on July 24, the top leadership promised to “adjust and optimize policies” to boost the beleaguered property sector, as well as introduce measures to promote private investment.
Separately, China’s state planner, the National Development and Reform Commission, also released a 17-point statement, and pledged to encourage more private capital into the construction of major national projects.
Days before, the government and the Communist Party issued a rare joint pledge vowing to treat private companies the same as state-owned enterprises, and ensure fair treatment in areas like intellectual property, financing and labor supply.
In the latest measures released Thursday, the PBOC said China’s Interbank Market Dealers Association will continue to increase the bond financing support tools to “accelerate the innovation of the bond market,” and “meet the diversified financing needs of private enterprises.”
Pan urged financial institutions to “actively create a good atmosphere” to support the development and growth of private firms and understand their needs better.
“It is necessary to accurately implement differentiated housing credit policies, meet the reasonable financing needs of private real estate enterprises, and promote the stable and healthy development of the real estate industry,” the PBOC said, according to a Google translation.