China’s economically vital property market slid for a fourth straight month as more cities reported new-home prices fell in August and at a faster pace, adding to the gloom in the world’s second-largest economy.
Shares of Chinese financial service and property developers fell as much as 2% in morning trade after the news, dragging down the Hong Kong market. In a further response to slower growth, China’s central bank lowered the 14-day repurchase rate it uses to lend to commercial banks by 0.2 percentage points, to 3.5%, the second cut this year.
With some economists and real-estate analysts expecting housing prices to continue falling through at least the end of 2014, potential homeowners have been in no hurry to buy, leaving developers struggling to sell empty apartments and houses.
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Wall Street Journal via CHINA US Focus http://ift.tt/1tp1cfx
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