(Bloomberg) -- China property shares continued to rally, as the banking regulator’s call for support on first-home purchases cements confidence policy is easing for the sector. Local media report that China Evergrande Group has paid a bond interest also helped boost sentiment.

Developers again led gains in Hong Kong and the mainland, with the Shanghai Stock Exchange Property Index surging as much as 4.6%, the most since the start of September. Seazen Holdings Co. jumped the limit in Shanghai, while China Resources Land Ltd. advanced 7.5% to be one of the top contributors to the Hang Seng Index. 

The call by the China Banking and Insurance Regulatory Commission to meet first-home buyers’ mortgage demand is “a timely positive gift” for developers, Citigroup Inc. analysts including Griffin Chan wrote in a note. “We view the latest CBIRC comments signal stronger than expected supports,” they added, seeing the sector’s rally to extend into November with another 10%-15% room of upside.


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