Chinese property shares have soared for a second day after Beijing chose to throw the struggling real estate sector a lifeline.
Despite a downgrade for China’s third-biggest property developer, Sunac, on Thursday, stocks in the sector lifted again in Hong Kong and the mainland thanks to an announcement by vice premier Liu He, China’s economic tsar, on Wednesday that the government needed to reduce risks in the industry.
In a sign of the heightened concern inside China’s Communist Party leadership about the property sector and the economy in general – best illustrated by the near-collapse of developer Evergrande – Liu urged the roll-out of market-friendly policies to support the economy.
