Beijing's proposal to revive the property market boosts China property stocks.

• After China's Ministry of Finance announced new policy measures to stabilize the struggling real estate market, a rally ensued.
• Local governments will be granted more authority to purchase land and unsold housing inventories from developers, as announced by senior officials at a highly anticipated press conference on Saturday.
• Beijing's policy focus may boost investor sentiment in the short term, but analysts advise investors to hold off on making decisions until additional information about the plan's execution is available.

Beijing announced more support measures for the troubled property sector on the weekend, causing China property stocks to jump on Monday.

On Monday, the Hang Seng Mainland Properties Index increased by more than 2%, while the S&P 500 was down 0.4% in volatile trading.

was the top mover in the HSMPI, rising 7.6%.

Other real estate developers also experienced substantial growth, with gaining approximately 7% and achieving a 6% increase.

The real estate sector was the top performer in Mainland China's CSI 300, increasing by almost 5%, despite the broader index rising only 2%.

After China's Ministry of Finance announced new policy measures to stabilize the struggling real estate market, a rally ensued.

Local governments will be granted more authority to purchase land and unsold housing inventories from developers, as announced by senior officials at a highly anticipated press conference on Saturday.

According to Tommy Xie, managing director and head of Asia Macro Research at OCBC Bank, this policy aims to control the equilibrium in the land market, decrease vacant land and ease the financial burdens on local governments and developers, as stated in a note on Monday.

Leonard Law, a senior credit analyst at Lucror Analytics, stated that the government's latest move to absorb unsold housing inventory represents another attempt, but it's uncertain if there are enough market incentives for local governments to implement these measures.

Beijing's policy focus may boost investor sentiment in the near term, but investors should exercise caution and await further details on the implementation of the plans, Law advised.

Goldman Sachs economists believe that incremental policy changes will have limited effects on property destocking until implementation bottlenecks are resolved.

It was added that local governments and developers often disagree on transaction prices.

Goldman Sachs economists predict that the property market's impact on GDP growth will remain significant until 2025, as construction activity slows down due to indicators such as land sales and property starts.

In late September, China's President Xi Jinping held a meeting to "stop the real estate market drop and promote a steady recovery," as stated by CNBC's translation of the meeting's summary.

After the central bank cut mortgage rates on individual loans, a high-level meeting chaired by Xi was held to ease homeowners' financial burdens.

To stimulate demand, major cities in China have eased property purchase limitations.

The real estate industry in China continues to struggle with a significant amount of unsold units and unfinished projects. To improve home buyers' confidence, analysts have emphasized the need for China to address its inventory issues.

Liao Min, the Vice Minister of Finance, stated at a Saturday briefing that authorities were considering reducing real estate-related taxes. He did not provide specific figures and emphasized that supporting real estate required multiple policies.