HONG KONGNEW YORK, Sept 4 Reuters Country Garden39;s deal with creditors for an extension on onshore debt payments worth 3.9 billion yuan 537 million boosted shares in the developer on Monday and gave China39;s crisisridden property sector some muchneeded respite.

Shares in Country Garden jumped as much as 19 to their highest level since Aug. 10 and were set for the biggest oneday percentage rise since November. Hong Kong39;s Hang Seng mainland properties index rose more than 9.

But while investors in the company may be heaving sighs of relief, it remains to be seen whether a raft of government stimulus measures will soon help revive demand, ease the sector39;s cash squeeze and lift the gloom over the wider financial system.

Beijing on Monday added to its series of policy measures in recent months to revive the world39;s secondlargest economy, approving the setting up of a special bureau to promote the development and growth of the private economy.

The private sector is responsible for 80 of new urban jobs, but has struggled to attract investment amid a frail economic recovery over the first half of the year, with business owners also constrained by weak domestic demand.

The worsening financial woes of Country Garden have only further highlighted the fragile state of the country39;s real estate industry which accounts for roughly a quarter of the economy and has been in dire debt straits since 2021.

Considered financially sound compared to peers, China39;s top…