China property stocks surge to highest levels in a year as stimulus rally continues

The real estate sector in China, particularly in Shenzhen, has seen a surge in stock prices for Hong Kong-listed Chinese property companies. Companies like Longfor Group Holdings, Shimao Group, and Kaisa Group have experienced significant gains in their stock prices, with some reaching their highest levels in over a year. This rally is part of China’s stimulus measures to boost the economy, which has been experiencing a general economic slowdown. Major cities in mainland China have introduced easing measures to enhance homebuyer confidence, but analysts warn that lifting prices and reviving demand in the property market will be a challenging task. Despite efforts to support the real estate sector, growth is expected to remain below target due to the ongoing drag from the property market.