Property developers lead mainland stock rally

Mainland stocks rose to a 20-month high, led by developers, after mortgage lending rules saw their first relaxation by the central bank since property sales began slowing down in January.

The Shanghai Composite Index climbed 0.8 percent to 2,382.79 points at the close, spurred by a 1.7 percent jump in a gauge of property stocks. Mainland markets were closed over the past week for the National Day holidays after the benchmark index posted a 15 percent gain last quarter.

China Vanke Co Ltd, the nation's biggest listed property developer, gained the most since July 24, while Poly Real Estate Co Ltd's advance was the biggest since Aug 4. China Merchants Property Development Co added 2 percent.

"The property market will pick up in the fourth quarter, as the policy is kind of an all-out easing and very positive for the whole industry," said Wang Weijun, a strategist at Zheshang Securities Co in Shanghai.

Bloomberg contributed to this story.

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