China property shares jump on report of government plans to buy unsold homes [Yahoo! Finance]
Goldman Sachs Group, Inc. (The) (GS)
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Source: Yahoo! Finance
for local governments nationwide to buy millions of unsold homes from distressed companies to ease a protracted property crisis. Hong Kong's Hang Seng Mainland Properties Index firmed as much as 6% in morning trading. State-backed Sino-Ocean Group surged more than 50% and defaulted private developers CIFI Holdings and Shimao Group jumped more than 30%. Hong Kong's markets were closed on Wednesday for a public holiday. They have been catching up to gains in mainland property shares since the previous day. China's CSI 300 Real Estate index climbed over 3% on Thursday, following a 2.2% rise on Wednesday. Bloomberg News said on Wednesday the State Council is gathering feedback on the preliminary plan from various provinces and government bodies, after a meeting of the ruling Communist Party leaders in late April called for efforts to clear mounting housing inventory. Local state-owned enterprises would be asked to help purchase unsold homes from distressed developers at steep
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