Longfor rises 4% and Country Garden rebounds 6% as Shanghai adjusts housing purchase restrictions starting tomorrow

Chinese property stocks rose today. In addition to Country Garden (02007.HK) announcing that it has paid approximately USD 398 million in cash to creditors (accounting for 2% of the restructured debt principal), the Shanghai Municipal Housing and Urban-Rural Development Administration and four other departments also jointly issued a notice, clarifying that the housing purchase restriction policy will be further relaxed starting tomorrow (26th), and the maximum loan amount for housing provident fund will be moderately increased to 2.4 million RMB.

Longfor Group (00960.HK) saw its stock price reach a high of 10.38 RMB, rising 6% at one point, and is currently reported at 10.2 RMB, up 4.2%, with a transaction volume of 155 million RMB. Country Garden is currently reported at 0.325 RMB, up 6.5%, with a transaction volume of 170 million RMB. Sunac (01918.HK) rose 4%, Yuexiu Property (00123.HK) increased by 3.1%, Jinmao (00817.HK) rose 2.5%, and R&F Properties (01109.HK) climbed 2.6%.

The Shanghai Municipal Housing and Urban-Rural Development Administration and four other departments jointly issued a notice, clarifying that the housing purchase restriction policy will be further relaxed, effective from tomorrow. Among them, the required duration for non-Shanghai residents to pay social insurance or individual income tax for purchasing housing within the outer ring has been shortened. For non-local resident families or adult singles purchasing housing within the outer ring, the required duration for social insurance or personal income tax payment has been adjusted to a continuous payment of one year or more before the purchase date. Shanghai also indicated a moderate increase in the maximum loan amount for housing provident fund. The maximum loan amount for families purchasing their first home has been increased from 1.6 million RMB to 2.4 million RMB, combined with policies for families with multiple children and purchasing green buildings (with a maximum increase of 35%), allowing the maximum loan amount for provident fund families to reach 3.24 million RMB. The maximum loan amount for purchasing a second home has also been correspondingly increased