China home prices rise most in nearly 2 years, big cities fuel bubble worries

Average new home prices in 70 major cities climbed 3.6 percent in February from a year ago, quickening from January's 2.5 percent rise, according to Reuters calculations based on data released by the National Statistics Bureau (NBS) on Friday.

That was the quickest year-on-year increase since June 2014, and encouragingly, 32 of 70 major cities tracked by the NBS saw annual price gains, up from 25 in January.

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But the divergence in home prices - surging values in bigger cities and depressed markets in smaller cities plagued by a supply glut - makes Beijing's job harder as it looks to reanimate growth without inflating asset bubbles.