Surge in Chinese Developer Stocks Powered by Mainland Traders

Traders in mainland China were likely the main force behind the jaw-dropping rally in distressed developer stocks Wednesday. Through the trading links with Hong Kong, onshore investors purchased a net HK$540 million ($69 million) and HK$125 million worth of Sunac China Holdings Ltd. and Country Garden Holdings Co. respectively, according to Bloomberg calculations based on exchange data.

(Bloomberg) — Traders in mainland China were likely the main force behind the jaw-dropping rally in distressed developer stocks Wednesday. Through the trading links with Hong Kong, onshore investors purchased a net HK$540 million ($69 million) and HK$125 million worth of Sunac China Holdings Ltd. and Country Garden Holdings Co. respectively, according to Bloomberg calculations based on exchange data. 

Sunac surged a record 68% Wednesday while Country Garden jumped 21% as traders bet on further property support. Chinese traders’ buying activity accounted for at least 45% of the total turnover of the two developers. The stocks traded mixed early Thursday. 

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