Beijing to clamp down on property market irregularities as rents soar

Rental companies are capitalizing on Beijing’s campaign to develop a viable urban rental market. (Reuters)
Updated 17 August 2018
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Beijing to clamp down on property market irregularities as rents soar

BEIJING: Beijing’s housing authority said on Friday it will clamp down on market irregularities that have fueled a spike in rental prices, telling major apartment rental service providers, including Ziroom, to correct their behavior.
In a statement on its website, the Beijing Municipal Commission of Housing and Urban-rural Development said it had held talks with major rental companies on Friday after media reports of surging rents.
Since last year, authorities have been looking favorably on real estate companies that have robust plans to develop their rental businesses as this fit with President Xi Jinping’s pledge to reduce the speculative nature of the property market and help provide affordable housing for those who can not afford to buy.
Policymakers have appealed to banks and insurers to facilitate funding and help accelerate the development of rental markets.
Rental companies are capitalizing on Beijing’s campaign to develop a viable urban rental market. In January, Ziroom — a variation on Airbnb — landed a fresh investment of about $620 million led by private equity firm Warburg Pincus.
The housing authority told the rental companies they should not grab rental listings with above market price offers using funds they procured from banks and other financial channels, which has fueled a “vicious competition.”
It also warned they should not tempt landlords to terminate leasing contracts early with promises of higher prices.
The bureau said it had launched a joint inspection with the Beijing banking regulator and the finance and tax bureaus on rental companies to crack down on such behavior that had rattled the market.


Huawei secretly helped North Korea build, maintain wireless network: Washington Post

Updated 22 July 2019
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Huawei secretly helped North Korea build, maintain wireless network: Washington Post

WASHINGTON: Huawei Technologies Co. Ltd. , the Chinese company put on a US black list because of national security concerns, secretly helped North Korea build and maintain its commercial wireless network, the Washington Post reported on Monday, citing sources and internal documents.
The Chinese telecommunications giant partnered with a state-owned Chinese firm, Panda International Information Technology Co. Ltd., on a number of projects in North Korea over at least eight years, the Post reported.
Such a move would raise questions of whether Huawei, which has used US technology in its components, violated American export controls to furnish North Korea with equipment, according to the Post.
The United States put Huawei on a blacklist in May, citing national security concerns. The move banned US companies from selling most US parts and components to Huawei without special licenses but President Donald Trump said last month American firms could resume sales in a bid to restart trade talks with Beijing.
Huawei did not immediately respond to a request for comment, but said in a statement to the Washington Post it had “no business presence” in North Korea. It was not immediately possible to reach the Panda Group.
The Commerce Department, which also did not immediately respond to a request for comment, has investigated possible links between Huawei and North Korea since 2016 but has not publicly connected the two, the Post said.
Huawei and Panda vacated their Pyongyang office in the first half of 2016, the newspaper reported.