Doubts hang over China's property sector rescue package

Markets rally on news, but success of new measures remains to be seen

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Residential buildings under construction in Shanghai: China's property market has been hit by a debt crisis among developers and sagging demand for new homes. © Reuters

ECHO WONG, Nikkei staff writer

HONG KONG -- China's latest bid to rescue its crisis-hit property sector has sparked a market rally on hopes it marks a turning point, but a rebound in home sales is crucial for any recovery, observers say.

Beijing last week rolled out a series of measures aimed at relieving the pressure on cash-strapped developers, including development and bond financing, as well as loan-repayment extensions.

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