China’s property stocks rose, led by China Vanke and Gemdale, on speculation the industry will receive tax rebates and other incentives from the government.
A stimulus plan for China’s real estate industry has been submitted to the nation’s cabinet for approval, the Securities Daily reported, citing Nie Meisheng, former head of Real Estate Industrialization under the Ministry of Construction. The parliament may enact the plan in March, which will give developers credit and development support.
Bloomberg reported property stocks rose ‘in anticipation of tax rebates for the sector,’ said Gabriel Gondard, Shanghai-based deputy chief investment officer at Fortune SGAM Fund Management, which oversees about $7 billion. ‘China cannot afford to let this asset class collapse.’
Vanke said yesterday that its January property sales rose 19% from a year earlier to RMB2.19 billion ($320 million).
Frank Gong, head of China equity research at JPMorgan Chase said, ‘Policy makers need to do more to stimulate the property market. They cannot get complacent and just sit there being satisfied with the bounce in property transaction volumes.’
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