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China Property Optimism Spurs Market Rally as Funding Encouraged

Oct. 3, 2022, 9:26 AM

Optimism that the worst of China’s property slump is over boosted markets after Bloomberg reported that regulators told the biggest state-owned banks to provide financing worth at least $85 billion to the embattled sector.

KWG Group Holdings Ltd. and Country Garden Holdings Co. shares jumped more 8% on Monday, helping lift a gauge of real estate stocks by as much as 2.6%. Meanwhile, higher-rated developer dollar bonds rebounded, with some notes snapping a two-week losing streak. Mainland markets are closed this week for a holiday.

The buying spree comes after the People’s Bank of China and the China ...