China’s stocks capped the biggest weekly gain in more than a month, led by property developers, after data showed home prices increased in more cities.The Shanghai Composite Index climbed 4.2 percent this week, the most since the period ended Nov. 6, and traded less than 0.1 percent lower at the close on Friday. A gauge of real-estate companies surged 6.4 percent in the past five days, the best performance among industry groups. New home prices rose in 33 out of 70 Chinese cities the government tracked last month, compared with 27 in October, according to the National Bureau of Statistics.
The official data showed China’s home-price recovery spread to more smaller cities, after authorities rolled out easing measures targeting regions with a surplus of unsold homes. After treading water for the first 11 months of the year, property stocks have rallied this month after China’s politburo, the top decision-making body of the Communist Party, vowed to reduce housing inventories as one of its key tasks in 2016.“Policy factors are affecting property stocks most as the government is encouraging reductions in housing inventories,” said Li Jingyuan, head of securities investment at Shanghai Zhaoyi Asset Management. “That’s only the start of supporting policies and we’ll probably see more to bolster the industry.”