By Yifan Wang


CIFI Holdings (Group) Co. shares jumped in Hong Kong on Wednesday, as investors welcomed the Chinese developer's latest fundraising progress reported by state media.

The stock soared 14% to an intraday high of 1.30 Hong Kong dollars (US$0.17) in late morning trade. That put shares on course for their best closing in more than two weeks.

The rally came after a Chinese state-owned media outlet reported that CIFI is planning to issue up to CNY2.0 billion (US$289.2 million) medium-term notes, fully guaranteed by the government.

News of financing plan added to recently rising investor optimism for a 2023 bounce-back in China's real-estate sector that has been struggling with tight liquidity and weak demand. Other developers also jumped on Wednesday, with Longfor Group Holdings Ltd. up by 8.3% and Powerlong Real Estate Holdings Ltd. gaining 9.3%.

"We expect a new era for the sector from 2023, riding on a turnaround in property- and Covid-related policies since November," analysts at investment bank Citi said in a recent note, pointing to likely "an impending mix of credit- and demand-supportive policies" over the coming months.


Write to Yifan Wang at yifan.wang@wsj.com


(END) Dow Jones Newswires

01-03-23 2302ET