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China Home Glut May Worsen as Developers Avoid Price Drop

The biggest immediate risk facing China’s economy is about to get worse.

A reluctance among some developers to sell units at prices lower than they could fetch just months ago threatens to cause a swelling in unsold properties. The worsening glut would extend a slide in construction that’s already put a drag on the world’s second-largest economy, and counter policy makers’ efforts to stimulate the real-estate industry with loosened rules.