By Bingyan Wang
Shares of Country Garden Holdings rose Tuesday after a news report that the indebted Chinese developer received creditors' approval to extend repayments on six onshore bonds.
The property giant's shares were 4.9% higher by midday. Some real-estate stocks also rose, with China Evergrande Group advancing 14% and Shimao Group climbing 8.1%. The gains helped the city's broader Hang Seng Index erase early losses.
Country Garden's creditors on Monday approved extending repayments on six out of eight onshore bonds by three years, Reuters reported, citing people familiar with the matter.
China's latest credit data released Monday also helped lift investor sentiment. New bank loans rose more than expected in August, suggesting that Beijing's stimulus has been effective.
"The acceleration is likely to continue in September on the back of special government bond issuance," and further policy easing is likely based on historical experience, Larry Hu, Macquarie's chief China economist, said in a note.
Earlier this month, major Chinese cities including Beijing and Shanghai relaxed mortgage requirements for some home buyers, lowering the bar for property purchases.
"The latest round of property easing measures may provide a bit of a boost to new home sales in large cities," Nomura economist Ting Lu said in a note. However, he expressed concern about housing demand in lower-tier cities, given that the hot money will likely flow to megacities.
Write to Bingyan Wang at firstname.lastname@example.org
(END) Dow Jones Newswires