HK developers gain on signs of easing of curbs

[HONG KONG] Hong Kong developer stocks jumped the most in more than two years on speculation the government may ease curbs on home prices after the city's leader said the market is no longer overheated.

Sun Hung Kai Properties Ltd, the city's second-largest developer, surged 4.1 per cent and Wharf Holdings Ltd advanced 4.3 per cent. The Hang Seng Property Index of nine company stocks closed 3.7 per cent higher, the most since Jan 19, 2012, while the benchmark index was up 0.3 per cent.

Chief Executive Leung Chun-ying said on Tuesday that the government won't extend a pilot programme to reserve homes for local residents, part of a package of measures aimed at cooling prices in the world's most-expensive housing market. Prices fell 4.1 per cent in the past year, after more than doubling since 2009, as higher sales taxes and downpayment requirements were imposed.