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China home prices fall in November despite rate cut
The average price of a new home in China's 100 major cities was 10,589 yuan per square metre in November, down 0.38 percent from October, the independent China Index Academy said in a statement. "We expect the interest rate cut to kick in next year," Bai Yanjun, research director for the China Index Academy, told AFP. "The rate cut sends a strong signal that the property market will likely bottom out soon," China economist for Merrill Lynch Hong Kong, Lu Ting, said in a research note. On a year-on-year basis, China's new home prices fell 1.57 percent from the same month last year, far sharper that the annual fall of 0.52 percent in October, the academy said. For China's ten biggest cities - which tend to have the most active property markets - new home prices rose 0.07 percent in November from October, marking the first gain after six months of declines, it said. China had previously sought to rein in runaway property prices, a source of discontent among ordinary citizens, by introducing market control measures including limits on buying second and third homes. Cities began rolling back some of the measures this year, as China's economy slowed and the central government relented. China's central bank cut the benchmark one-year lending rate by 0.40 percentage points to 5.60 percent, and trimmed the one-year deposit rate by 0.25 percentage points to 2.75 percent.

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