Hong Kong Property Stocks Stage Sharp Rebound As Sunac China And Others Rally Over 20%

On January 29 Hong Kong property shares staged a pronounced rebound, driven by signals of policy easing and a pickup in second‑hand home transactions in core cities. By the time of publication, Sunac China, Logan Group and Shimao Group had each risen by more than 20 percent, while Country Garden and a number of other developers recorded double‑digit gains.

Analysts at China Post Securities observed that recent policy measures have concentrated on stabilizing demand and reducing inventory. The Ministry of Finance and two other departments extended the individual income tax rebate for replacement home purchases through the end of 2027, lowering transaction costs for improvement‑oriented buyers. The People’s Bank of China reduced the down‑payment requirement for commercial properties from 50 percent to 30 percent, directly reactivating liquidity in the commercial real estate market.

Since the start of 2026, several leading developers have made substantive progress on debt resolution, and the market has taken note of constructive developments among major issuers. Vanke’s successful extension of three domestic bonds was cited as a pivotal event that helped ease short‑term risk sentiment. Debt restructuring plans for Country Garden and Sunac China, approved at the end of 2025, entered implementation in 2026 and are expected by market participants to materially alleviate future leverage pressures.

Housing market fundamentals have also shown early signs of recovery. Monitoring data from Anjuke indicate that in the third week of 2026 (ending January 18), second‑hand transactions across 15 major cities rose 8.0 percent week‑on‑week, with Beijing, Shanghai and Shenzhen posting particularly strong performance; second‑hand transaction volumes in those three first‑tier cities increased by 9.5 percent week‑on‑week and served as the primary drivers of the market improvement. Research tracked by Caitong Securities further showed that in the week ending January 23 (the fourth week of January), second‑hand transaction area across 15 cities reached 1.718 million square meters, up 5.9 percent week‑on‑week and 19.9 percent year‑on‑year, suggesting a degree of persistence in the recovery.

Taken together, policy easing at the start of the year and renewed trading activity in core first‑tier cities have refocused capital on property equities. China Post Securities characterized the current pattern as an early “mini spring” for the real estate market, driven by concentrated policy support and demand release in major cities; the brokerage noted that the second‑hand market has led the recovery and that post‑Spring Festival listing volumes will be an important window for observing supply‑demand dynamics.