By Bingyan Wang


Chinese property stocks are higher Friday after China's vice premier said Beijing is considering new measures to support the real estate sector, characterizing it as a "pillar industry" for the country's economy.

Among the top gainers are Guangzhou R&F Properties Co. and Longfor Group, which were up 5.2% and 3.8%, respectively, at the mid-day break in Hong Kong. In the mainland market, both Gree Real Estate and CCCG Real Estate rose by their 10% daily limit. The Hang Seng Mainland Properties Index gained 2.6%.

Vice Premier Liu He, the country's economic czar, said Thursday at a meeting of European Union and Chinese officials that Beijing is weighing new measures "to improve the balance sheet of the real estate industry," according to state-run Xinhua news agency. "China's urbanization is still in a stage of rapid development, and there is enough demand space to provide support for the real estate industry," he said.

He didn't mention details of the new measures nor say when they would be released.

Mr. Liu's speech came after China released November property data showing that average new-home prices in 70 major cities fell 0.25% on month and 2.33% on year, with property investment down 9.8% in the first 11 months of the year.

"The speech is a wind vane for the future property policies," said Yan Yuejin, research director of Shanghai-based E-house China. It indicates that the property sector will get support from Beijing on multiple fronts, and that more-supportive policies related to the industry likely will be issued at a faster pace in 2023, he said.

China's real-estate sector remains hard hit by regulatory tightening last year that dried up many developers' channels for financing and restricted housing speculation, hurting both demand and supply.

Shares of Country Garden, China's largest developer, are close to 60% lower this year, while shares of Guangzhou R&F Properties and Longfor are down 24% and 28%, respectively.


Write to Bingyan Wang at bingyan.wang@wsj.com


(END) Dow Jones Newswires

12-16-22 0034ET