Shares of property developers with exposure to China such as CapitaLand and Yanlord Land Group rose, bucking the broader market trend, on expectations that China’s rate cut could boost their earnings.

By 11:43 a.m., CapitaLand shares were up 2.1% at $2.96, with over 16 million shares changing hands, making it the most actively traded stock by value. The benchmark Straits Times Index was down 0.4%.

The People’s Bank of China surprised markets with a cut in benchmark official interest rates late on Thursday, the second time it has cut rates in less than a month.

“Banks will have more flexibility in offering mortgages, so this should help drive end-user demand. This also coincides with the peak (sales) periods in October and September, so (property) sales volumes should strengthen,” said Wilson Liew, an analyst at Maybank Kim Eng.

Yanlord Land Group, which develops residential projects in China, rose 4.4% to S$1.31 and have gained 37% so far this year. Smaller rival Ying Li International Real Estate gained 4.6% to $0.34.