Home Prices Could Fall in Some Smaller Chinese Cities in 2019

Home Prices Could Fall in Some Smaller Chinese Cities in 2019
Residential buildings and construction sites are seen in Tianjin, China on Oct. 18, 2015. Kim Kyung-Hoon/Reuters
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BEIJING—Home prices in some smaller Chinese cities could fall next year as the world’s second-largest economy slows, Fitch Ratings said on Nov. 19, while adding the government is expected to step in to stem any precipitous decline.

Nationwide growth in China’s property prices has moderated this year in response to measures to curb speculation. But many investors are still exploiting regulatory loopholes, turning to smaller and less restrictive cities.