Government Launches Six Month Property Campaign
A government-driven campaign targeting the drivers of property speculation is being initiated in 30 cities across China. It’s the latest in a series of actions signaling that officials are increasing pressure to root out regulatory violations.
The six-month campaign will target unlicensed real estate agencies, false advertising, rent manipulation, non-compliant loans, developer-driven price manipulation, and other violations.
The government has also been cracking down on loans for shanty-town redevelopment projects, and tightening restrictions in the use of offshore bond sales. According to the National Development and Reform Commission, Chinese developers should be using the proceeds from overseas bond sales to reduce debt, rather than spending more to further develop new projects.
The increased tightening comes on the tails of the recent announcement that, despite the slew of regulatory measures to hit the market over the year, China’s home prices had risen the most in 19 months in May.
With this in mind, the housing ministry said it plans to track violations and “shake the market”.
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