China said to plan tighter control of funds entering property

[BEIJING] China's financial regulators plan to further tighten control on funds flowing into the property market in violation of existing rules, according to people familiar with the matter.

Authorities including the central bank, the China Banking Regulatory Commission and the China Securities Regulatory Commission aim to tighten control on speculative funds in real estate and on funds involved in land transactions against current rules, said the people, who asked not to be identified because the information isn't public.

The people didn't provide further details.

The central bank, the banking and securities regulators didn't immediately respond to faxes seeking comment.

The plan comes after a raft of intensified curbs rolled out by local governments during a week-long holiday in China, and the central bank governor's comments highlighting concerns about escalating home prices.

Authorities in at least 21 cities in recent weeks have introduced home-market curbs ranging from raising down-payment requirements for both first and second homes, to ruling some potential buyers ineligible.

The government has focused on fast-rising housing prices in some cities and has taken measures to ensure robust property-market growth, central bank Governor Zhou Xiaochuan said on Oct 6 in Washington.

BLOOMBERG