(Yicai) Nov. 22 -- Shares of Chinese property developers keep soaring after Bloomberg reported that financial regulators are drawing up a whitelist of favored companies to buoy the struggling sector.

Dalong Weiye Real Estate Development [SHA: 600159] soared to CNY4.37 (60 US cents), up by the 10 percent exchange-imposed daily trading limit for the third straight trading day.

Shenzhen-based Zhenye Group [SHE: 000006] jumped to CNY5.46 today, its second consecutive day of hitting the limit.

Sunac China [HKG: 1918], which recently announced the completion of overseas debt restructuring, momentarily jumped by 8 percent to HKD2.82 (36 US cents) in Hong Kong today. Shares of the Tianjin-based property developer leaped by 12 percent yesterday.

Select enterprises will receive greater support from financial institutions in terms of loans, bonds, and equity financing, Bloomberg reported yesterday. The whitelist will be created based on asset scale and operating conditions. It may consist of 50 state-owned and private housing enterprises, including industry giants China Vanke and Longfor Group, which have not yet defaulted on their debts.

Yicai interviewed a number of property developers about the news, most of whom said that they should be included in the list if it materializes but they have not yet received a notice about it.

Still, some industry players stay pessimistic. Due to the limited effects of previous relief policies, sales are expected to remain difficult. "There are more house sellers than buyers," an employee at a housing enterprise pointed out.

China's financial regulators have been trying to defuse risks in the real estate industry since last year. On Nov. 17, the People’s Bank of China, the National Administration of Financial Regulation, and the China Securities Regulatory Commission jointly held a symposium, stressing that China should meet the reasonable financing needs of property developers, support their bond and equity financing, and focus on solving private property developers’ difficulties in issuing bonds.

Editors: Dou Shicong, Emmi Laine