China's property market saw a sharp rise in activity in May amid rumors that the government was considering loosening its curbing measures to boost the economy. This prompted the government to reiterate that current policies on tightening the property market will not change.
Online transactions for used homes in Beijing reached nearly 13,000 units, up 57% from a year earlier. Figures for newly-built homes were over 10,000 units, a yearly increase of 43%. The Banking Regulatory Commission said it will not change existing policies regulating mortgage loans for residential housing. The National Development and Reform Commission also made it clear that it has never stated that loosing housing policies were needed to stimulate the economy.
The Central bank said interest rates for individual home loans will not change, while the Ministry of Housing and Urban-Rural Development said it will cooperate with departments to carry out existing credit policies for housing loans.