fbpx

Type to search

Chinese Developers’ Shares Rise on Easier Escrow Access

The Hang Seng Mainland Properties Index rose 3%, versus a 0.3% loss for the main Hang Seng Index


China's central bank has allowed local governments to ease mortgage rates for new homebuyers.
BofA estimated that 2.4 million households or 7.3 million people were affected by unfinished projects from 2020-21 and that the sector would remain as a major drag on growth in coming quarters. Photo: Reuters.

 

Shares of Chinese property developers climbed on Friday, following media reports that the sector is gaining easier access to presale proceeds from residential projects – the latest move by authorities to ease the industry’s severe cash crunch.

The Hang Seng Mainland Properties Index rose 3%, versus a 0.3% loss for the main Hang Seng Index.

Notable gainers included Sunac China which jumped 6.5% and Shimao Group which surged 7.5%.

Cailianshe, an online provider of financial news, said late Thursday that authorities would correct any over-tightening” of escrow accounts that had happened at the city or county-level.

It was reported last month that China was drafting nationwide rules to make it easier for property developers to access pre-sale funds held in escrow accounts.

 

  • Reuters with additional editing by Sean OMeara

 

ALSO READ:

 

 

China Looks To Give Developers More Escrow Funds Access

 

 

China Evergrande Plans To Crank Up Work, Avoid Fire Sales

 

 

Evergrande Hires More Advisers, Country Garden In Bond Surprise

 

 

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

logo

AF China Bond