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hina's property stocks surged on Monday after Beijing announced new support measures over the weekend to stabilize the ailing sector. While the Hang Seng Index declined 0.4% in volatile trading, the Hang Seng Mainland Properties Index rose over 2%. China Resources Land led the gains with a 7.6% increase.

    Shares of other real estate developers also saw significant jumps, including China Overseas Land & Investment and Yuexiu Property, which gained nearly 7% and 6%, respectively. The rally came after China's Ministry of Finance outlined policy measures to regulate the supply-demand balance in the land market and alleviate financing pressures on local governments and developers.

    The new policies allow local governments to issue more special bonds to buy land and unsold housing inventories from developers, aiming to reduce idle land and ease financing burdens. Analysts see this as another attempt by the government to absorb the country's unsold housing inventory, but question whether there will be sufficient market incentives for local governments to implement these measures.

    Investor sentiment may improve in the near term due to Beijing's policy focus, but economists caution that investors need to wait for more details on implementation. Goldman Sachs notes that incremental policy changes are unlikely to have a significant impact until implementation bottlenecks are addressed, such as disagreements over transaction prices between local governments and developers.

    China's real estate sector still faces challenges, including large inventories of unsold units and unfinished projects. Analysts emphasize the need for China to clean up these inventories to restore home buyers' confidence. The government is also considering reducing real estate-related taxes to support the sector.