Hong Kong and Shanghai ended the morning session on a positive note after China’s housing minister outlined a fresh batch of measures in the latest bid to convince traders the government was getting a handle on a painful real-estate crisis.
The world’s number two economy has struggled to recover since lifting strict Covid controls at the end of 2022, battered by a debt crisis in the property sector and torpid consumer demand.
Authorities announced a series of piecemeal measures in that time to little effect, but last month’s raft of pledges sparked blockbuster rallies on the mainland and Hong Kong on hopes that even more were in the pipeline.
But news conferences last Tuesday and Saturday took the wind out of those sails and led to a fresh bout of volatility in trading floors.
In addition, analysts said the latest briefing from housing minister Ni Hong also fell short.
Ni said today that officials would almost double the amount of credit available to complete unfinished housing projects to US$562 billion and also help renovate a million homes.
The move, he said, would “be conducive to absorbing the existing stock of commercial housing”.
But SPI Asset Management analyst Stephen Innes said they’re still trying to talk the talk, with more noise about stabilising the property market.
“As the briefing rolled on, it was clear, traders were not thrilled.
“Let’s be honest, though — China’s property mess isn’t something that can be patched up with a few speeches and half-baked measures,” he added.
Hong Kong ended the morning 0.9% higher and Shanghai added 0.1% but they were both well off their earlier highs.
There were also gains in Sydney, Singapore, Wellington, Taipei, Mumbai, Bangkok, Jakarta and Manila, though Tokyo extended yesterday’s losses.
The gains followed another strong lead from New York, where small-cap stocks rose as investors shifted out of big-name firms such as Amazon, Apple and Microsoft, which have soared this year on the back of demand for all things linked to artificial intelligence.
US investors also welcomed strong earnings from Morgan Stanley and United Airlines that helped offset a decision by Dutch tech giant ASML to cut its 2025 guidance and forecast a slump in sales bookings, which sparked worries over the outlook for the sector.