China property rules to tighten up against bubble risk

Brent Lewin | Bloomberg | Getty Images

A man walks in front of advertisements for residential property in the glass facade of a real estate agency in Guangzhou, Guangdong province of China.

Chinese authorities have said they will head off the risk of a property market crash by stiffening regulation and preventing high land prices.

Regulators from land and housing ministries, as well as the Peoples Bank of China (PBOC), have agreed plans to curb speculation in bricks and mortar, Reuters reported, citing comments on Chinese state television (CCTV).

The authorities said they would stop funds being illegally funneled into property and that capital flow would be more forcibly balanced between real estate and other industries.

CCTV also reported that there would be greater scrutiny of the land market to prevent the underlying cost from pushing up property prices.