Certain commercial real estate agencies in Shanghai were recently punished for spreading rumors about local property market policies. According to thepaper.cn, authorities suspended some agents.
The punished agencies include Pacific Rehouse and the Shanghai branch of "Wo Ai Wo Jia" (www.5j5j.com). They were found guilty of initiating a rumor that the Shanghai government is expected to tighten mortgage rates. After the rumor went viral, property sales soared. Notably, the transaction volume on August 30th alone achieved 1,470 sales, about 400 more than that on August 29th.
The municipal commission of housing and urban-rural development declared that the widely-spread rumor was false. But the declaration didn't cool the heated market. Authorities claim they will continue investigating those agents and agencies.
