The speculations about increased housing demand in China has benefitted SouFun Holdings Ltd (NYSE:SFUN) big time in New York stock exchange. As per the reports, the company paved the way in NYSE and was one of the very few that gained. The thing that led the company perform excellently in the market was nothing but speculations about government’s inclination towards boosting housing market conditions in the country.
Road So Far:
SouFun Holdings is one of the top-notched websites that provide information about the real estate field in China. As soon as the speculations hit the market, it rose 8.9% and touched $7.82 mark. With the help of this excellent performance, it erased the loss for the year as its shares increased to a three-month high level. One of its competitor Leju Holdings Ltd. also showed good performance in the stock market and increased 7.6% after this speculation. It was the third consecutive day when the Bloomberg China-US index elevated.
According to a government report that was published a few days ago, less number of cities in China saw a dip in the property price while the prices of property enhanced in Beijing and eleven other cities. In order to make sure that the purchasing power of the buyers enhances, the concerned authorities have decided to make the mortgage policies in the state easy and hassle-free. The prime objective of it will be to enhance the property market in the country.
The Central Bank has cut the interest rates for the second time since November and required reserve ratio for lenders for the second time in the last few months. According to Gabriel Wallach, North Grove Capital LLC, the new policies are expected to be less restrictive for property seekers. He gave his interview by phone on Wednesday. It’s going to affect not only to individuals, but businesses as well.