By Yifan Wang


Shares of Chinese property developers jumped Thursday amid growing signs of Beijing's commitment to shoring up the country's massive real-estate industry, which has been weighed down by a slowing economy and a yearlong liquidity crisis.

In Hong Kong, shares of Guangzhou R&F Properties Co., Country Garden Holdings Co. and Logan Group Co. were all up by nearly 10%. The Hang Seng Mainland Properties Index, a benchmark for Hong Kong-listed Chinese developers, was last up 4.1%. That marked a substantial outpeformance compared with the broader market, with the Hang Seng Index ending 0.4% higher.

In China, several major developers including Shenzhen Centralcon Investment Holding Co. and CCCG Real Estate Corp. closed 10% higher Thursday, hitting the market's daily price gain limit. The broader Chinese market settled lower, with the benchmark Shanghai Composite Index losing 1.2%.

Analysts pointed to a report by market-data provider REDD Intelligence that said Chinese President Xi Jinping has given his approval for local governments to relax home-buying restrictions in regions other than the four top-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen, citing unnamed sources.

This supportive gesture from Mr. Xi is "of particular significance," a Hong Kong-based property-sector analyst said.

Home-buying curbs have been central to China's real-estate market control measures, and Mr. Xi's willingness to relax such restrictions demonstrate the extent of Beijing's commitment to stimulating housing demand and boosting investor confidence. "This acts as an important top-level policy support confirmation and market sentiment catalyst," the analyst said.

Also on Thursday, Chinese state media Securities Daily reported that more than 120 cities have so far this year loosened requirements on the use of housing provident funds to purchase properties.

But while Chinese authorities have stepped up efforts to strengthen the real-estate market, analysts said more time is needed to monitor whether home sales could pick up.

Citi analysts said in a recent note that the flurry of supportive measures have led to some "short-term policy-driven rebound." But "sector valuations indicate investor hesitancy," they said. "We see [the third quarter] as a good time to reassess policy effectiveness."


Write to Yifan Wang at yifan.wang@wsj.com


(END) Dow Jones Newswires

09-15-22 0435ET