China's new-home prices rose in the largest number of cities in 14 months in July after interest-rate cuts and incentives were adopted for first-time buyers, complicating the government's efforts to stimulate economic growth while curbing property speculation.

Prices climbed from a month earlier in 49 of the 70 cities tracked by the government, the National Bureau of Statistics said on its website on Saturday. That was the most since May last year and compared with 25 cities in June. Prices fell in nine cities and were unchanged in 12.

Buyers, buoyed by two interest rate cuts since June, have returned to the market even as the government pledges to maintain real estate curbs to make housing more affordable. The risk of a rebound in the property market may deter the People's Bank of China from reducing rates further or cutting banks' reserve requirement ratios to boost funds in the financial system and support lending after new credit slumped in July.

China Daily-Agencies