Reports of easing China’s property leverage rules sparked a sector rally and lifted China-linked risk assets, including the AUD. Summary:Chinese property shares surged after reports that regulators have eased enforcement of the “three red lines” leverage rules. Sunac China led gains, jumping as much as 25% in Hong Kong, lifting broader sector sentiment. Market participants said the development is best seen as part of a broader effort by Beijing to stabilise the property sector after a prolonged downturn that has weighed on growth, confidence and local government finances. Australia’s exposure to China through iron ore and other bulk exports means signs of stabilisation in China’s property sector are often viewed as supportive for the currency.