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Opinion
Christopher Langner

Shifting Foundations in China

Inventories equivalent to six months of sales and a bulge in investment properties are bad signs.
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Home sales are booming in China, prompting local authorities to try to control prices. That's great news for investors awaiting a series of earnings reports from developers that operate in the mainland.

On the surface, the numbers are encouraging. Home sales reached 9.9 trillion yuan ($1.4 trillion) last year, and the 36 percent increase was the biggest since 2010.