BEIJING Feb 13 China's asset management
association has banned registration of private equity schemes
for residential property investment in 16 cities where it says
the market has overheated.
The cities include Beijing, Shanghai, Guangzhou, Shenzhen
and Xiamen, according to a notice published on Monday on the
Wechat account of the Asset Management Association of China.
The self-regulatory organisation will bar private equity
investors from using trust and other financing services to fund
real estate developers for land purchases and working capital,
it said in the notice.
Real estate investment in China rose 6.9 percent in 2016,
according to official data published last month, the strongest
annual growth in seven years.
Authorities have rushed to dampen home prices in the biggest
urban markets by implementing a series of buying and ownership
restrictions, aiming to prevent a sudden correction that could
damage the broader economy.
China's banks in some big cities also are lowering discounts
on lending rates for first-time home buyers, in order to tighten
property sector credit.
(Reporting by Matthew Miller; Editing by Ruth Pitchford)