HONG KONG (MarketWatch) -- Societe Generale analysts cautioned Wednesday of "shockwaves" in the Chinese economy stemming from the unfolding correction in nation's housing market, where weakening home prices are gaining breadth and accelerating to the downside. SocGen economist Yao Wei said nationwide housing-price data released by the National Bureau of Statistics on Wednesday were consistent with other recent statistics on sales, construction starts and investments that point to "unambiguously deteriorating trends." Data released by the NBS Wednesday morning showed average housing prices fell in December in 53 of 70 cities tracked, while only two cities showed a small increase. "The data just turned from bad to worse," Yao said in the note. "The economy as a whole has not felt much chill yet, but the first half of 2012 is going to be difficult for not just property developers." She said that weaker housing sales and falling investment in new real-estate projects will "send shockwaves along the industry chain" that supplies the housing sector.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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