Iron ore prices rallied more than 1.5 per cent on Thursday, driven by a surge in Chinese property stocks. This increase followed reports in local media that developers are no longer required to submit key debt metrics to regulators. A Bloomberg Intelligence gauge of Chinese developer shares jumped as much as 11 per cent, marking the biggest gain since July.
Sunac China shares surged as much as 31 per cent in Hong Kong trading, while Country Garden added nearly 25 per cent. The reported change means that several developers no longer need to submit the monthly “three red lines” indicators. These debt metrics were introduced in 2021 to control excessive borrowing. If confirmed, the change would represent a significant policy easing as authorities aim to stabilise a prolonged downturn in the housing market, which has been weighing on China’s economy.
Singapore iron ore futures climbed 1.5 per cent to $US104.65 a tonne in response to the news. Australian mining stocks also reacted positively. BHP shares rose 1.7 per cent, supported by record copper prices. Rio Tinto gained 2 per cent, while Fortescue scaled back earlier losses to close down only 0.4 per cent. BHP is a leading global resources company, extracting and processing minerals, oil, and gas. Rio Tinto is a multinational mining group that focuses on the production of materials essential to human progress.
