Greentown China (03900) saw its stock price surge 5.19% during intraday trading on Thursday, as investors reacted positively to potential policy support for China's property sector. The rally comes amid speculation that high U.S. tariffs on Chinese goods could prompt Beijing to introduce stronger stimulus measures for the real estate industry.
According to CGS International analysts, Chinese policymakers may implement more robust support for the property sector to achieve the country's GDP growth target of around 5%. Potential measures could include accelerating the purchase of unsold units from property developers, lowering mortgage rates, and fully easing homebuying restrictions to boost consumption. These steps are seen as necessary to counteract the economic pressures stemming from ongoing trade tensions with the United States.
Notably, Greentown China was specifically mentioned by CGS International as one of the preferred private developers in the current market environment. The property sector has shown signs of stabilization, particularly in top-tier cities' sales and land markets, following strong policy support introduced last September. This positive outlook, combined with the potential for additional stimulus measures, appears to be driving investor optimism in Greentown China and other real estate stocks.
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