The 14-day relative strength measure for the Shanghai Composite, measuring how rapidly prices have advanced or dropped during a specified time period, was at 31.8 yesterday. Readings below 30 indicate it may be poised to rise.
The Shanghai property stock index gained 3.8 percent today, the highest close since March 1. Vanke, the nation’s biggest listed property developer, rose 5.5 percent to 11.64 yuan. Poly Real Estate Group Co. (600048), the second largest, jumped 6 percent to 12.46 yuan. Gemdale Corp. surged 6.8 percent to 7.42 yuan.
“As uncertainties remain, investors are looking for areas with less negative news for return,” said BoCom’s Hong. ‘Property is such a candidate -- with the curbs already strict enough and probably cannot be any tighter. The sector has performance to show for itself.’’