This new series of bans, together with a recent restriction by the state-owned assets regulator, are aimed at state-owned companies that have helped push up asset prices. The 78 companies were banned from investing in property because property isn’t their core business. China is probably unique as a country that allows government departments to buy property not connected to their core function.
Property: 78 companies banned
Meanwhile, the China Banking Regulatory Commission reiterated that banks must not issue new loans to developers found to have hoarded land. The commission said it will "firmly punish misuse of loans in the stock and property markets."
None of which has so far made any real difference. China’s urban-property prices rose nearly 11% in February from a year earlier, the fastest pace in nearly two years.
Concerns that home prices in China have grown too fast prompted the government to begin tightening mortgage lending and land sales late last year.
Wall Street Journal Online reports the government is still cautious about moving too fast to curb activity in the property market, as the sector has helped drive China’s economic recovery.