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.
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