China Rebound Leads Stocks Higher. Goldman Says there is More Stimulus to Come.

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Global stocks rose on Monday on a rebound in China as authorities eased mortgage rules to boost the country’s ailing property sector.

Hong Kong

Hang Seng Index
2.4% jumped, while

Shanghai mix
It rose 1.4%. Property developer

Country garden
S

(Ticker: 2007. Hong Kong) Shares rose 17 percent after the offshore private bond agreed with lenders to extend repayments, according to a Reuters report. There were also strong gains for China’s biggest tech names—

Ali Baba

(9988. Hong Kong) increased by 3.3% and

JD.com

(9618. Hong Kong) grew by 5%.

Beijing and Shanghai have become the latest Chinese cities to relax mortgage regulations, allowing first-time home buyers to enjoy priority loans regardless of their credit records.

The pan-European Stoxx 600 index rose 0.7 percent in early trade, while Germany’s

DAX
France rose 0.6%

CAC
increased by 0.9%, and the UK

FTSE 100
It grew by 0.6 percent.

Other moves, such as increased support for China’s property sector and the People’s Bank of China’s support for the yuan, point to more stimulus ahead, Goldman Sachs analyst Hui Shan said in a note on Sunday.

“Together, policymakers will send a clear signal that they want to stabilize the property market, increase growth and raise sentiment,” Shan said. He added: “We doubt that more piecemeal measures will be introduced until policymakers are satisfied with the results.”

Among the biggest risers in the FTSE 100 early on Monday were companies exposed to China, including miners.

Glencore

(GLEN.UK),

Anglo American

(AAL.UK), and

Rio Tinto

(RIO.UK), also a luxury fashion house

Burberry

(BRBY) – All were between 1.5% and 2%.

Write to Callum Keown at [email protected]