China's New Construction Starts Contract as Curbs Take Effect

BEIJING--China's new construction starts contracted for the first time this year, signaling that Beijing's resolve to further tighten financing for the property sector and curb housing speculation have yielded results.

New construction starts measured by floor area dropped 0.9% in January to July compared with a 3.8% increase in the first half of the year.

Real-estate investment rose 12.7% in the first seven months of the year, compared with a 15% gain in the first half, according to data released Monday by the National Bureau of Statistics.

Home sales by volume--a major indicator of demand--climbed 33.1% in the first seven months of 2021 from a year earlier, slower than the 41.9% gain in the January-to-June period.

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  08-15-21 2235ET
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