Shares of China Resources Land Ltd. soared 7.51% on Thursday, September 19, 2024, as Chinese property stocks rallied amid expectations of monetary easing by Beijing following the Federal Reserve's half-percentage-point interest rate cut.
The Hang Seng Mainland Properties Index, tracking Chinese developers listed in Hong Kong, rose 5.1% early Thursday, with China Resources Land among the top gainers. The gains came after the Fed kicked off its easing cycle, providing more room for the People's Bank of China (PBOC) to cut rates without being overly concerned about yuan stability.
Analysts expect the PBOC to announce lower loan prime rates this Friday. Further easing of monetary policy settings in China could boost sentiment in the property sector, which has been grappling with a downturn for the last few years. If domestic mortgage rate cuts materialize, it could support a recovery in home transaction volumes in the short run, according to analysts.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.