World Economy

China Home Prices Rise

China Home Prices RiseChina Home Prices Rise

Sizzling home price rises in China’s biggest cities showed signs of easing in May but sharp gains appeared to be spreading to smaller cities, making policymakers’ job harder as they look to support the faltering economy without inflating bubbles, Reuters reported. The recovery in China’s property market since late last year has been a rare bright spot in the world’s second-largest economy, which has been slowing amid weak demand at home and abroad, cooling investment and excess industrial capacity. Average new home prices in 70 major cities climbed 6.9% last month from a year ago, accelerating from April’s 6.2% rise.