China home prices extend slide as June drop slows

China's house prices kept falling in June, though the pace of decline eased. The year-over-year measure dropped 3.3%, narrower than May's 3.5% slide, data from the National Bureau of Statistics showed. On a monthly basis, prices fell 0.1%, improving from a 0.2% decline a month earlier.

The moderation suggests stimulus measures in the sector are having a marginal effect but have not reversed the downturn that has weighed on household wealth, developer finances, and local government revenues. Policy support since late 2024 includes lowered mortgage rates, relaxed purchase restrictions, and state-backed purchases of unsold homes.

Markets now look to upcoming economic activity data for June along with second-quarter growth figures, both expected to show an economy where property has been the main drag.