Chinese developer shares are bouncing back after the country’s top leadership pledged to optimize and adjust property policies to ensure the sector’s healthy development. A Bloomberg Intelligence gauge of developer shares climbed as much as 7.9%, the most since Dec. 9, with some traders attributing the gains to a short squeeze.
The official slogan of “housing is for living, not for speculation” was left out of the Politburo meeting’s statement for the first time in years, an omission that was taken positively by investors. The message should help alleviate renewed concerns about financial stress in the industry, with more easing measures at local government levels expected in the near future, analysts say.
