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hares of Hong Kong-listed Chinese property stocks surged to their highest levels in over a year as China's stimulus rally continues. The real estate sector led gains in the Hang Seng Index, with Longfor Group Holdings rising 25% and becoming the top mover. Other developers also saw significant increases: Shimao Group skyrocketed 97%, Kaisa Group jumped 45.48%, and China Overseas Land & Investment climbed 14.33%. The wider Hang Seng Index added 5.46%.

    Major cities in mainland China have introduced easing measures to boost homebuyer confidence, following central bank policy stimulus initiatives last week. Guangzhou removed all restrictions on home purchases starting Monday, while Shanghai reduced the required tax-paying period and Shenzhen relaxed purchasing restrictions.

    Investors are betting that these measures will lead to a home market recovery, helping developers with sales and prices. However, challenges remain, particularly in non-tier one cities where inventory pressure is high. If home sales don't improve within weeks, the market may return to its previous state.

    While these measures will help stabilize the property market, lifting prices and reviving demand will be difficult. Real estate used to account for over 25% of China's GDP but has faced a prolonged decline since 2020 due to Beijing's crackdown on excessive debt. Chinese officials have increased support to alleviate financial pressures and stabilize the market, but previous initiatives have not led to significant turnarounds.