Guangzhou R&F Shares Jump After Report Some Real Estate Curbs May Be Eased

By Yifan Wang

Shares of Chinese developer Guangzhou R&F Properties Co. rose sharply on Thursday, after a report that the Guangzhou government plans to ease some curbs on housing prices.

The stock rose as much as 13% in the morning and were last up 9.9% at 1.66 Hong Kong dollars (US$0.21) at the mid-day trading break. That puts R&F on track for its best one-day gain since March.

The upturn came after CLS, a state-owned financial news outlet, on Wednesday reported that Guangzhou authorities are planning to allow developers more room to adjust their selling prices and offer more discounts. The report cited unnamed sources but such a move could fuel more demand for homes in the southern Chinese city.

The easing of restrictions would add to a series of local government policies in recent months aimed at shoring up the struggling property sector and stimulate a slowing economy amid Covid-19 outbreaks and restrictions on movements.

Other developers headquartered outside of Guangzhou also tracked higher. Country Garden Holdings Co. jumped 9.1% and Longfor Group Holdings Ltd. gained 6.7%.

Write to Yifan Wang at [email protected]