Chinese Property Stocks Surge on Reported Government Revival Plans

Chinese property stocks surged sharply, with a Bloomberg Intelligence index rising as much as 11%, driven by speculation of an imminent high-level government meeting aimed at reviving the ailing real estate sector. Investors are speculating that the government may revisit the 2015 Central Urban Work Conference playbook, which previously launched a multi-year shanty-town redevelopment and infrastructure stimulus program, potentially unlocking construction activity and boosting liquidity in smaller cities. Despite this optimism, experts caution that funding constraints and ongoing sector challenges, including defaults and weak home sales, may limit the scale of any new stimulus. Major developers like Logan Group and Sino-Ocean Group saw unprecedented stock gains, with Logan Group rising up to 85% amid rumors and a debt-restructuring plan approval. Market analysts highlight that the central government, under President Xi Jinping's leadership, faces mounting political pressure to take decisive action after disappointing June home sales, though no official confirmation of the meeting or new policy has been made. Overall, the sector remains in a prolonged downturn, but the prospect of renewed government intervention has reignited hope among investors and developers.