China property stocks rally after major cities ease homebuying restrictions

Shares of Chinese property developers rallied on Monday after major cities in mainland China unveiled easing measures to boost homebuyer sentiment, following the central bank's blitz of policy stimulus.

The Guangzhou city government said in a notice on Sunday that all restrictions on home purchases would be removed, effective from Monday. Previously, migrant families were required to pay taxes or social insurance for at least six months in order to purchase up to two homes, while single individuals were limited to one apartment.

The Shanghai government also lowered the required tax-paying period to one year from three years. The city also lowered the down-payment ratio for first homes to around 15%, while second homes to about 25%, above the nation's average ratio of 15%. The rules take effect starting Tuesday, according to the notice late Sunday.

Shenzhen's government also relaxed purchasing restrictions — which had capped local families to two homes and single individuals to one — allowing buyers to purchase one more apartment in certain districts. Migrant families with at least two children can now buy two homes, instead of one previously, according to the statement.

Meanwhile, Reuters reported, citing two sources, that the city of Beijing was also considering lifting restrictions across some of its districts.

The Hang Seng Mainland Properties Index climbed 7% on Monday, extending last week's gain of more than 30%.

Hong Kong-listed shares of real estate developers like Longfor Group Holdings, Hang Lung Properties, China Resources Land were some of the biggest movers on the Hang Seng index, gaining 12.4%, 12.7% and 2.5%, respectively. China Overseas Land & Investment and China Vanke climbed 3.5% and 11.7%, giving back some