JPMorgan Asset Management and Invesco Asset Management say China’s cooling property market is an opportunity to boost dollar bond holdings as the government’s targeted stimulus benefits the largest developers.
Li Ka-shing, Asia’s richest man, backed recent measures by the Hong Kong government to curb an “unhealthy” surge in property prices that’s turned the city into the world’s most expensive housing market.
Chinese developers plunged in Hong Kong trading after Reuters said the nation’s banking regulator told trust companies to report dealings with Greentown China Holdings Ltd., sparking concerns of a funding squeeze.
China increased the minimum down payment for second-home purchases and told local governments to set price targets on new properties, stepping up efforts to cool the markets and driving shares of developers lower.
Hong Kong stocks rose, lifting the city’s benchmark index to a 19-month high as China Merchants Holdings International Co. led gains on a report the government of Shenzhen may review land-use policies for a site the company jointly owns.
Shanghai introduced new measures to curb soaring home prices including restricting home purchases to one per household, increasing the supply of residential land, and using a property tax to cool the real estate market.