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Chinese Developers’ Shares Rise on Easier Escrow Access

The Hang Seng Mainland Properties Index rose 3%, versus a 0.3% loss for the main Hang Seng Index


Man rides a bicycle next to a construction site near residential buildings in Beijing
Man rides a bike next to a building site in Beijing. China's long running real estate crisis has left many cities severely short of revenue. Photo: Reuters.

 

Shares of Chinese property developers climbed on Friday, following media reports that the sector is gaining easier access to presale proceeds from residential projects – the latest move by authorities to ease the industry’s severe cash crunch.

The Hang Seng Mainland Properties Index rose 3%, versus a 0.3% loss for the main Hang Seng Index.

Notable gainers included Sunac China which jumped 6.5% and Shimao Group which surged 7.5%.

Cailianshe, an online provider of financial news, said late Thursday that authorities would correct any over-tightening” of escrow accounts that had happened at the city or county-level.

It was reported last month that China was drafting nationwide rules to make it easier for property developers to access pre-sale funds held in escrow accounts.

 

  • Reuters with additional editing by Sean OMeara

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.