China property stocks slide after housing policies report
HONG KONG (REUTERS) - Chinese property stocks such as China Resources Land Ltd fell on Tuesday after an official newspaper said stricter implementation of housing policies was needed to curb real estate prices, snapping strong gains for the sector in recent weeks.
China Resources Land, which gained nearly 70 per cent last year and hit a record high on Monday, fell 2.7 per cent after the China Securities Journal said strict implementation of policies was necessary to ease rising home prices.
The newspaper reported that strict implementation of policies was a focus for regulating the property sector, as the market was expecting a new round of upward pressure after home prices rose in the past seven months.
"There's a lot of liquidity floating around in Hong Kong, so investors have to park their money somewhere in this risk-on environment," said Mr Lee Wee Liat, Asia head of property research at BNP Paribas, explaining the rally in Chinese property shares.