China's house prices have marched higher for 15 years, helping to drive an economic boom but making home ownership unaffordable for many families. Now a slump is dragging down economic growth that already was slowing. Some analysts worry banks might be shaken if developers default on loans. The slowdown should fit the Communist Party's ambition to nurture growth based on domestic consumption instead of trade and credit-fueled investment. But the timing is awkward, with demand for China's exports and growth in consumer spending both weaker than expected.
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