HONG KONG, June 19 Reuters The few investment houses which are bullish on China39;s property sector are holding on to their optimistic bets in defiance of a faltering stock market and a dominant view that Beijing39;s latest support package was not enough.

The positive calls, including from Citi and Bank of America, were made in the leadup to easing measures announced on May 17, based on expectations the package would offer more than the piecemeal steps taken in the past two years.

Authorities for the first time instructed local governments to buy unsold apartments through stateowned firms, facilitating up to 500 billion yuan 69 billion for the purchases, and fuelling expectations that more funds could be made available.

They also further cut downpayment requirements and removed the floor for mortgage rates, stepping up efforts to stabilize the ailing sector after it slipped into a debt crisis in 2021 and sparked many company defaults.

The Hang Seng Mainland Properties Index has lost almost half of its 40 gains made in the leadup to the May announcement, as doubts set in over the size and effectiveness of the support package. Shares of statebacked developer Vanke retreated 28 after surging 90.

But the bullish analysts say the central government39;s prominent role in coordinating the latest measures has actually strengthened their conviction, injecting a rare dose of positivity into a sector that has seen new home sales dropping 40 and company valuations plunging 80…