Greentown China's stock soared 6.12% on Wednesday, outperforming the market amid reports that Chinese authorities are exploring a plan to provide funding relief to the debt-laden property developer China Vanke.
According to Bloomberg News, the proposed plan involves allocating 20 billion yuan ($2.7 billion) in special local government bonds to purchase unsold properties and vacant land from Vanke. Additionally, Vanke and its affiliates would be allowed to tap other financing sources, including new bond sales and bank loans, to repay their public and private debt.
The news of potential government support for the struggling property sector has sparked a rally in Greentown China and other real estate stocks. Investors are optimistic that similar measures may be extended to other developers, providing much-needed liquidity and debt relief to the industry.
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