Key Takeaways:
Chinese property developers listed in Hong Kong rallied broadly Thursday after the State Council issued its Urban Renewal 15th Five-Year Plan, which targets idle land activation and establishes a sustainable investment framework for urban construction.
The plan, published by the State Council on May 29, envisions significant progress in urban renewal by 2030 and outlines six major tasks, including making better use of underutilized land and introducing full life-cycle safety management systems for housing, according to the official document reported by Xinhua News Agency.
Country Garden Holdings (02007.HK) surged 24.4% to HKD0.26, the biggest gainer among the developers, with turnover of 1.72 billion shares worth HKD458 million. China Vanke (02202.HK) rose 13% to HKD2.87 on turnover of 74.1 million shares worth HKD209 million. China Aoyuan (03883.HK) climbed 17%, Yuexiu Property (00123.HK) added 6.5% and KWG Group (01813.HK) gained 8.4%.
The rally marks one of the strongest single-day moves for Chinese developers this year as the government signals a more supportive stance toward the struggling property sector. The plan's emphasis on activating idle land could help distressed developers monetize non-performing assets and improve liquidity, though the sustainability of the rally depends on execution details and whether the measures translate into actual cash flow relief for heavily indebted companies.
The Urban Renewal Plan, covering the 2026-2030 period, sets out seven major policy measures. These include improving the implementation mechanism for urban renewal, building a sustainable investment and financing system for urban construction and operations, stepping up support for activating idle land, establishing a full life-cycle housing safety management system, promoting multi-party participation, enhancing the legal and regulatory framework, and strengthening technological and talent support.
The plan also calls for constructing or renovating "quality homes" and upgrading urban municipal infrastructure. The broad-based rally extended across the sector, with even deeply distressed names participating. Country Garden, which has been navigating a restructuring process, saw its stock more than double from its opening price of HKD0.209. China Aoyuan, another developer in the midst of offshore debt restructuring, jumped 17%.
This article is for informational purposes only and does not constitute investment advice.
