Chinese property stocks surged in Hong Kong, with Radiance Holdings up 59%, Ronshine China up 13%, R&F Properties and CIFI Holdings up 10%, Sunac China up 8%.

Global banks see gains ahead for China’s property stocks, with some projecting increases of close to 20 per cent for certain developers this year, driven by record-low mortgage rates and stronger policy support as Beijing seeks to bolster growth amid tariff challenges.

“The convergence of low rates, a supply squeeze and credit normalisation present a cocktail of conditions that are driving a structural property market recovery,” HSBC analysts said in a report on Wednesday.

Interest-rate cuts had reduced developers’ borrowing costs and lifted profitability, especially for state-owned firms, they said. Meanwhile, a decade-low mortgage-to-income ratio had created a favourable environment for investment and valuation, they added.

The London-based bank raised its target price for five mainland developers – state-controlled China Overseas Land & Investment, China Jinmao and China Resources Land, as well as Greentown and Longfor – by an average of 9 per cent, implying an 18 per cent upside.

“April new home sales moderated, [hingeing] on supply shortage and trade dispute worries,” analysts at Citigroup said in a report on Wednesday. But sales could pick up in June in top-tier cities amid new property launches, they added.

“We reckon it is a good time to accumulate China property sector [stocks] over a two-year horizon, with ongoing return-on-equity improvement on asset turn and pricing,” Citigroup’s analysts said, adding that they expected policy to remain supportive on asset prices even as concerns around tariffs eased.