China Policy Support for Property ‘Exceeds Expectations,’ Vanke Chief Says

The head of China’s second-largest property developer by sales said he sees “positive signs” in the real estate industry even as the slump in housing sales persists, with recent policy support expected to have a “positive effect” on the sector and resolve the liquidity problems facing builders.

“The policy (environment) is gradually improving, and the strength and breadth (of support) has completely exceeded our expectations,” Yu Liang, chairman of China Vanke Co. Ltd. (000002.SZ / 02202.HK), told shareholders at a meeting on Friday to approve the company’s plans to issue more shares and sell more debt. However, he warned that in the short term, the market would still face disruption despite the lifting of Covid-19 curbs as spreading infections deter potential buyers from visiting sales offices.