Hong Kong property stocks surge as China takes action to revive property sector

Hong Kong-listed property stocks surged on Monday، leading gains on theHang Seng Indexand powering the benchmark to be the top gainer in Asia.

Shares of real estate companies likeEvergrande،Logan GroupandLongfor Groupspiked over 9% on Monday، withCountry Garden Holdingsleading gains at 16.85% up. The Hang Seng Mainland Property Index was up 8.16%.

Over the weekend،Country Garden won approvalfrom 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 the company alsowired a coupon paymenton 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.

On Friday، China also took action to revive its property sector. The People’s Bank of Chinaeasedsome borrowing rulesandcut the reserve requirement ratiofor foreign exchange deposits from the current 6% to 4% starting Sept. 15.

Some of China’s largest banks also cut interest rates on yuan deposits، including the Industrial and Commercial Bank ofChina،ChinaConstruction Bank Corpand Agricultural Bank ofChina.