Investing.com - In an unprecedented move for this year, stocks related to China's real estate market are on track to trigger a bull market. This optimistic outlook stems from ongoing beliefs that government authorities will take proactive steps to intensify housing demand while also enhancing the financial condition of property developers.
An industry barometer monitored by Bloomberg Intelligence showed a surge of up to 3% early this week. This signifies an impressive increase exceeding 20%, starting from its lowest point on July 24th. The front runners leading this positive trend include Guangzhou R&F Properties Co Ltd (HK:2777) and Yuexiu Property Co Ltd (HK:0123), both experiencing a remarkable climb above 10%.
This upward trajectory builds upon last week’s momentum when China's top-tier leaders committed more firmly than before towards rejuvenating their sluggish economy. Their strategy includes fuelling private spending and relaxing constraints on housing policies. In addition, they have demonstrated continued backing through actions such as encouraging banks to ease restrictions on property purchases and promising consistent access for developers into stable capital markets.
Furthermore, certain urban administrations like those in Beijing and Shenzhen have pledged commitment towards fine-tuning their property regulations according to leadership directives indicating forthcoming easing measures, as reported by Securities Times earlier this week.