Real estate stocks rise in Hong Kong supported by Chinese measures to stimulate the sector

Hong Kong-listed property stocks rose on Monday, leading gains on the Hang Seng index, boosting the index to become Asia’s biggest gainer.
Shares of real estate companies such as evergrand, Logan group and langfor group rose by more than 9% on Monday, and Country Garden Holdings consolidated its gains by 16.85%. The Hang Seng index of mainland real estate rose by 8.16%.
Over the weekend, Country Garden received approval from its creditors to extend payments of 3.9 billion yuan (540 million dollars) worth of internal private bonds, according to sources and a document seen by Reuters.
Bloomberg reported that the company also transferred a coupon payment on bonds denominated in RM2.85 million (USD 613 thousand).
Measures to revive the real estate sector
The Country Garden Company is still scheduled to pay 22 million dollars in the form of coupon payments on US dollar bonds that it missed in early August. The grace period ends on Wednesday.
 On Friday, China also took measures to revive its real estate sector. The people’s Bank of China has eased some borrowing rules and lowered the reserve requirement ratio for foreign exchange deposits from the current 6% to 4% starting from September 15.
Some of the largest Chinese banks have also cut interest rates on yuan deposits, including the industrial and Commercial Bank of China, the China Construction Bank, and the Agricultural Bank of China.