BEIJING (MNI) - The Chinese government is stepping up its campaign against surging property prices with the issuance of a circular on the weekend vowing to curb speculation in the real estate market and pledging to tighten up access to credit. The State Council circular, which was published via the official Xinhua News Agency, said the government plans to introduce measures designed to prevent bank loans from illegally entering the property market and to prevent the impact of speculative "hot money" from entering the market.
Property tax increases should outpace the property value gains in order to put a chill on the "hot money".