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Why Chinese property stocks flying?

China’s national team is going house hunting. State-owned enterprises and local governments are answering Beijing’s call to purchase the country’s vast swathe of unsold apartments. That should help put a floor on plunging property prices.

Local authorities in Hangzhou, home to corporate titans Alibaba (9988.HK), opens new tab and Geely Automobile (0175.HK), opens new tab, kicked off the bold initiative by announcing they will buy up to 100,000 square feet of apartments in Linan district at market prices and rent them out at affordable rates. Other regions are set to follow: the ruling Politburo in April called for a nationwide effort to reduce housing inventory. China’s cabinet, the State Council, is also considering a proposal that would see local governments and state-owned enterprises buying unsold homes from distressed developers using loans from state lenders, Bloomberg reported, opens new tab on Wednesday, citing sources.

https://www.reuters.com/breakingviews/china-goes-1-trln-apartment-buying-spree-2024-05-16/

The Chinese people are standing up: Mao