China property shares jump on easier buying restrictions

HONG KONG (Reuters) – Shares of China property developers surged on Monday after first-tier cities such as Guangzhou lifted all home purchase restrictions over the weekend, while Shanghai and Shenzhen announced plans to ease key buying curbs.

Hong Kong’s Hang Seng Mainland Properties Index gained more than 10%, and the mainland’s CSI 300 Real Estate index jumped around 9%.

China’s central bank also said on Sunday it would tell banks to lower mortgage rates for existing home loans before Oct. 31, as part of sweeping policies to support the country’s beleaguered property market as the economy slows.