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BEIJING/ HONG KONG: China is likely to hold off on any fresh moves to cool its property market for the next few months amid signs that earlier measures have had some success in curbing price rises.
Premier Wen Jiabao and other officials stuck to verbal suasion at a meeting this week of the National People's Congress, the largely ceremonial parliament, rather than unveiling new policies aimed at clamping down on property speculation.
Believing that Beijing has opted to hold off on new curbs for now, investors drove property stocks in Shanghai to a 1-½ month high on Tuesday. "The market takes it as an excuse for short-term rebound that there are no fresh policies," Toni Ho, an analyst at BOCOM International in Hong Kong, said in a note on Tuesday.
The Shanghai property index ended up 2.3 percent after hitting its highest level since Jan 22, beating the main index's 0.5 per cent gain. Shares of heavyweight developer China Vanke rose 2.4 per cent. RBS said it saw further gains for mid-cap real estate stocks such as Shimao Property and Guangzhou R&F.
Investors heaved a sigh of relief after Su Ning, a deputy central bank governor, told reporters this week: "There is no need to issue new policies."
Adding on Su's positive remarks, Jiang Weixin, minister of housing and urban-rural development, told a news briefing on Monday that the government has succeeded in controlling property speculation in some cities where prices were rising too fast.
In recent months, Beijing has tightened rules governing mortgage down payments and hoarding by developers of land and finished apartments, but policymakers have been careful not to act too quickly or aggressively. -Reuters
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