(Bloomberg) -- Hong Kong’s biggest developer and a real estate industry group poured cold water on the notion that the Chinese government is putting pressure on the city’s developers.

Sun Hung Kai Properties Ltd. hasn’t heard of information suggested in media reports that Beijing is squeezing builders, it said in a statement late Monday. The Real Estate Developers Association of Hong Kong said it was unaware of any meetings between developers and Beijing officials.

The remarks came after shares of Hong Kong property giants plunged following a Reuters report that said Chinese officials told the city’s developers to redirect resources to help solve a housing shortage. Beijing is no longer willing to tolerate “monopoly behavior,” the report quoted an unidentified source as saying. 

Read how Hong Kong’s property tycoons took a hit on China fears

That spurred fears that President Xi Jinping’s “Common Prosperity” policy agenda, which has swept through large swathes of industries on the mainland, is finally stretching into the city’s property companies. Monday’s sell-off wiped $6.7 billion from the value of assets of the families of Hong Kong’s four top property giants. 

Shares of Hong Kong developers rose on Tuesday morning, with the Hang Seng Property Index climbing as much as 2.5% after tumbling the most in more than a year on Monday. Sun Hung Kai advanced as much as 3.7%, while New World Development Co., Henderson Land Development Co. and CK Asset Holdings Ltd. also gained. 

Sun Hung Kai, the city’s largest developer by market value, said it never agrees with monopolistic practices. The company actively cooperates with the Hong Kong government by participating in land sharing programs and building transitional housing, it said.

Stewart Leung Chi-kin, executive committee chairman of the Real Estate Developers Association of Hong Kong, said in a phone interview that he hadn’t heard from its members of any individual meetings with central government officials. 

Hong Kong’s real estate firms want to cooperate with the government to solve the housing problems, Leung said. Local media including TVB News reported similar remarks earlier.

Sun Hung Kai is positive on the long-term development potential of Hong Kong and mainland China and will continue investing, the company said. 

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