China will crack down on misconduct by real estate developers: Xinhua

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By Yawen Chen, Nicholas Heath

BEIJING: China’s housing ministry said it will crack down on nine types of misconduct by real estate developers, the official Xinhua news agency reported on Friday.

The Ministry of Housing and Urban-Rural Development outlined nine irregular business activities by real estate developers through a teleconference on Friday.

The targeted misconduct includes false advertising, inventing and spreading rumors, carrying out presales without certificates, withholding unsold apartments and illegally charging deposits for house purchases, Xinhua said through its official weibo account.

Punishment for violators will depend on the severity of the infractions, and could include measures such as public renouncement and blacklisting.

Companies suspected of breaking the law will be reported to the police, the ministry was quoted as saying.

Overheating in China’s property market in recent months has become a serious concern for policymakers. More than 20 cities have adopted restrictive policies to prevent speculative buying that could further fuel price bubbles. ( Editing by Richard Borsuk)

 

Source: Reuters