China’s home prices posted a second consecutive annual drop in October, although monthly figures showed an improving sequential trend.
New home prices fell 2.6 percent in October from the year-ago period, after dropping an annual 1.3 percent in September, according to Reuters calculations of official data released by the National Bureau of Statistics Tuesday.
On-month, prices fell 0.8 percent, their sixth straight fall. But the extent of the declines appears to be easing: prices fell a monthly 1 percent in September after the 1.1 percent fall in August.
Shares of developers fell on the news, weighing on the Shanghai Composite, which traded 0.4 percent lower Tuesday.
Economists have cited a property bubble as the biggest risk to China’s economy. The sector contributes more than 15 percent to the world’s second-largest economy and impacts more than 40 other sectors from cement to furniture.
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