Fund-raising plans drawn up by Chinese property developers are now subject to government review as efforts continue to rein in the rapid real-estate price growth, Bloomberg reported. The China Securities Regulatory Commission has sent financing requests from 41 companies to the Ministry of Land and Resources (MLR) for reviews of land use compliance. The CSRC said reviews will be conducted of any company seeking to use equity financing to invest in real estate, or to repay bank loans or boost operating capital of real estate business units. The MLR will investigate each submission and establish whether land purchases were made legally and whether there are cases of real estate being left idle and changes in the use of properties. This tightening of oversight procedures follows hot on the heels of increased down payment requirements and mortgage rates. Property prices in 70 cities rose a record 11.7% in March.
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