New restrictions for chinese developers

Chinese developers are to be prevented from land banking by new restrictions imposed by the Ministry of Land and Resources, it was announced today...

The Chinese government has announced that companies who haven't started developing land more than a year after acquiring a site at auction will be banned from making bids in other auctions, in its latest effort to stabilize the housing market.

Danny Ma, senior director at China CBRE Research, said: "It's not the first time the government has tried to curb land hoarding to resolve the imbalance between the supply and demand of homes, with most cities having insufficient supply. The statement is a signal to the market the authorities will stick to its resolutions on the property market."

Source: The Wall Street Journal