Evergrande Real Estate Group Ltd, the second biggest developer in China in terms of sales, has gained 8.5 percent in Hong Kong after reporting that its Q1 sales more than doubled.
The stock closed at HK$3.59, its highest price since Feb 3.
According to Kenny Tang, an analyst from Redford Asset Management Ltd, after the surge in sales, investors bought the stock, which had lagged behind its rivals.
“People had been buying shares of the more established developers in China in the past few months amid uncertainty over how the government would cool the property market,” said Mr. Tang.
“Now that the first-quarter sales look good for most developers, investors are turning to laggards such as Evergrande.”
In March, the stock rose 0.9 percent, following a decline of 5.3 percent in February and a drop of 21 percent in January.
China Overseas Land & Investment Ltd, a HK-based builder controlled by the Chinese construction ministry, advanced 11 percent in March and 13 percent in February, following a 15-percent decline in January.
Evergrande said that its sales for the first quarter jumped 175 percent to 8.53 billion yuan (S$1.744 billion), making it China’s No. 2 developer by sales. The Hong Kong stock exchange was closed for trading from April 2 through April 6.
By area, Evergrande came in at No. 1, having sold 1.3 million sq m in Q1, as indicated on its website, citing data from China Real Estate Information Corp.