China Property Stocks Plunge 20% From May High as Concerns Linger

(Bloomberg) — China’s property stocks are on track to enter a technical bear market as doubts remain on Beijing’s efforts to bolster the sector.

A Bloomberg Intelligence gauge of Chinese developer shares dropped as much as 2.6% on Thursday, extending losses from a mid-May high to about 20%.

Real estate stocks have retreated amid skepticism over a broad support package unveiled by the central government on May 17. While investors initially cheered the policies, which include lower down-payment requirements for homebuyers, they have since questioned how useful the measures will be in reviving demand and addressing a housing inventory glut.