HK Movers | Mainland Real Estate Shares Shined. Logan Soared 42%; China Aoyuan Surged 32%; SUNAC, Kaisa, Country Garden, Shimao Group, Zhenro And KWG Up 20%

Tiger Newspress01-29

Mainland real estate shares shined on Thursday. Logan soared 42%; China Aoyuan surged 32%; SUNAC, Kaisa, Country Garden, Shimao Group, Zhenro and KWG up 20%.

Related persons of several Chinese property developers stated that their companies are no longer required by regulators to report the "Three Red Lines" metrics on a monthly basis, according to the Chinese media outlet Cailian Press.

However, some distressed property companies are required to periodically report financial indicators such as asset-liability ratios to special teams in the cities where their headquarters are located.

The situation originates from August 2020, when regulators, aiming to control the scale of developers' interest-bearing debts, piloted new regulations setting the "Three Red Lines" for financing.

In 2021, the "Three Red Lines" policy was expanded to include dozens of developers, with regulators requiring these companies to report the "Three Red Lines" metrics monthly.

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