City authorities say they are seeking to curb speculation, push for a rational market

Shanghai's housing authorities announced that they are stepping up limitations on home purchases in the city. In particular, raising down payment requirements as part of an effort to restrain fast growing house prices by limiting speculative buying.

Analysts said that more measures could be taken since policy makers had not exhausted the many tools they had in the box. In the process, the city's housing market may see fluctuations in both trading activities and average prices, they said.