Sales figures rally real estate stocks

Shares of China real estate companies rallied Monday, fueled by sound annual sales performance and signals of removing home purchase restrictions in some parts of the country.

By Jan 5, 22 listed property companies on the mainland have announced annual sales in 2017 totaling 2.92 trillion yuan ($449.33 billion), an increase of 52.54 percent compared with last year.

The contracted sales of Country Garden Holdings Co topped the industry for the first time, totaling 550.8 billion yuan. Boosted by sales performances, its shares rocketed as much as 9.7 percent on Monday, closing at 17.42 yuan.

China Vanke Co, ranking in second place, achieved annual sales of approximately 530 billion yuan in 2017, up by 45.3 percent, and its sales area expanded by 30 percent. Its shares in both Shenzhen and Hong Kong stock markets recorded historical highs on Monday, jumping as much as 7 percent.

In addition, analysts believe more cities in the country will relax home purchase restrictions after Lanzhou, capital of Northwest China's Gansu province, last Friday announced it would remove such limitations in three districts.

Yan Yuejin, research director at E-house China R&D Institute, estimates some capital cities of other provinces may also unwind purchase policies for houses at suburbs, but he also stressed those in downtown areas are not likely to be included.