China’s National Development and Reform Commission has stated that during the year’s second half, “recovery trend in the property market is likely to be sustained, which will create better situation for consumer prices and support factory-gate prices,” Reuters reported, citing an announcement on the commission’s website. A slump in the housing market has dragged on the national economy over the last year. While home sales and prices have improved in bigger Chinese cities in recent months thanks to new government support measures, conditions remain weak in smaller cities and a huge overhang of unsold houses is discouraging new investment and construction.
China Economic Review