China's new home prices rose in September, interrupting recession - survey.

In September, China's new home prices rose slightly, interrupting a four-month decline, data released on Sunday showed. Analysts said developers have stepped up the launch of new projects to take advantage of the latest support measures adopted by the government.

According to a survey by the China Index Academy, the average house price rose 0.05 percent from the previous month after falling since May.

Academy analysts say this month-on-month price rise is the highest since October 2021 and is attributed to the launch of new projects of high quality by developers.

Trust in the real estate sector, which accounts for a quarter of China's economic activity, has been eroded since 2021, when the government began cracking down on debt accumulation by developers, triggering a debt crisis. Deepening problems in the sector this year have affected the world's second-largest economy and rattled global financial markets.

In recent weeks, China has announced a series of measures aimed at boosting homebuying sentiment, including easing some loan rules and easing restrictions on home purchases in some cities.

These measures have given a small boost to new home sales in major cities such as Beijing, but some fear the improvement may be short-lived and could dampen demand in smaller cities.

If such policies continue to be optimized, the report notes, the market in first-tier cities is likely to stabilize this quarter, while recovery in smaller cities may take longer.

The China Evergrande Group, the world's most indebted real estate developer with more than $300 billion in liabilities, said its founder is under investigation for suspected crimes.