Residential buildings stand at the Metro Town development, jointly developed by CK Asset Property Holdings Ltd., Nan Fung International Holding Ltd. and MTR Corp., in Hong Kong, China, on Thursday, Jan. 11, 2018.
Anthony Kwan | Bloomberg | Getty Images
Hong Kong-listed property stocks experienced a significant surge on Monday, driving the Hang Seng Index to become the top performer in Asia.
Shares of real estate companies such as Evergrande, Logan Group, Longfor Group, and Country Garden Holdings spiked over 9% on Monday, with Country Garden Holdings leading the gains at 14.61%. The Hang Seng Mainland Property Index also rose by 9.09%.
Over the weekend, Country Garden won approval from its creditors to extend payments for a 3.9 billion yuan ($540 million) onshore private bond, according to sources and a document seen by Reuters.
Bloomberg reported that the company also wired a coupon payment on a 2.85 million Malaysian ringgit ($613,000) denominated bond.
Country Garden is still scheduled to pay $22 million in coupon payments on two U.S. dollar bonds it missed in early August. The grace period ends Wednesday.
China implemented measures on Friday to stimulate its property sector. The People’s Bank of China eased some borrowing rules and reduced the reserve requirement ratio for foreign exchange deposits from 6% to 4%, effective from September 15.
Additionally, several major Chinese banks lowered interest rates on yuan deposits, including the Industrial and Commercial Bank of China, China Construction Bank Corp, and Agricultural Bank of China.
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