The BHP Group Ltd (ASX: BHP) share price rose by 4.3% to an intraday high of $46.25 in a cracking session for ASX iron ore shares on Tuesday.
BHP shares closed the session at $45.91, up 3.54%.
Fellow miner Rio Tinto Ltd (ASX: RIO) also soared today, hitting an intraday peak of $120.59, up 4.63%.
Meanwhile, the Fortescue Metals Group Ltd (ASX: FMG) share price smashed a new 52-week high of $23.38, up 5.36%.
And it's all because China flagged further stimulus measures to boost its property sector and support consumer spending.
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What did China say to push the BHP share price higher?
According to Reuters, the state news agency Xinhua reported that China's Politburo intends to step up economic policy adjustments to boost domestic demand and confidence.
Xinhua said:
Currently, China's economy is facing new difficulties and challenges, which mainly arise from insufficient domestic demand, difficulties in the operation of some enterprises, risks and hidden dangers in key areas, as well as a grim and complex external environment.
China will implement its macro adjustments "in a precise and forceful manner".
While the country isn't expected to push through major stimulus, any boost to demand would be beneficial given China is the world's biggest importer of iron ore.
It buys about 70% of global supply.
The news lifted the Qingdao Port (PB Fines 61.5%) iron ore price by 1.13% to $US125.34 per tonne.
China's property downturn the 'key challenge'
China's property sector has been a worry for some time amid high developer debt.
Rio Tinto chair Dominic Barton recently said "there is a big real estate issue" in China.
The local property sector drives China's steel manufacturing demand.
Xinhua reported that China will adjust and optimise property policies in a timely manner, in response to "significant changes" in the supply and demand relationship in the property market.
Zhiwei Zhang, chief economist at Pinpoint Asset Management commented:
This is an interesting signal as the property sector downturn is arguably the key challenge the economy faces now.
At a news conference today, Fu Linghui from the National Bureau of Statistics of China said China's real estate market will shift from high speed to a stable pace in the medium and long run.
According to a report on news.metal.com, China is gradually suppressing speculative demand in the property market while supply is "undergoing phased adjustment".
The report said:
In the medium and long term, China's real estate market development is shifting from the past high-speed way to a steady development, which can be traced to the changes in the development stage of the real estate market and the adjustment of market supply and demand.
