Authorities in Shanghai have removed over 40,000 online messages and addressed more than 70,000 accounts as part of a campaign last month to regulate the dissemination of real estate information on social platforms amid a prolonged property slump.
The Shanghai Municipal Cyberspace Administration announced on Tuesday the weeks-long action, which required platforms such as Xiaohongshu and Bilibili (9626) to remove "certain distorted information on the housing market."
In total, more than 1,200 illegal live-streaming rooms were also shut down.
The removed information included claims of a "housing price crash.”
One account advertised "housing prices plummeting by 78 percent," which was deemed below market price and intended only to attract buyers.
Another account made statements such as "housing prices are about to plummet," which was deemed to misinterpret and exaggerate normal housing market regulations. It was closed according to regulations.
Hong Kong-listed mainland property stocks were pressured, with China Overseas Land & Investment (0688) falling 1.36 percent to HK$13.08; China Resources Land (1109) falling 3.1 percent to HK$29.4, Agile Group (3383) falling 2.5 percent to HK$0.385; and Shimao Group (0813) falling 3.24 percent to HK$0.209.
A prolonged property downturn since 2021, marked by many developers failing to repay debt and complete presold homes, has weighed on consumer confidence and sapped household spending. Chinese policymakers have struggled to revive the flailing market.
Under President Xi Jinping, political dissent has been all but extinguished within the so-called "Great Firewall" restricting China's internet. Beijing's army of online censors have instead in recent years clamped down on criticism about the Chinese economy and its slower growth since the COVID-19 pandemic.
The latest crackdown also highlights authorities' fears that online expressions of panic or discontent about the struggling property sector could lead to broader criticism of the government.
Xi, speaking last week at a study session of the Politburo, one of the ruling Communist Party's decision-making bodies, said that authorities should "dare to draw the sword" to cut off profit and industry networks behind online misconduct.
The Chinese leader added that artificial intelligence should be used to strengthen cyberspace governance. Shanghai CAC said on Tuesday that it targeted some accounts for passing off AI-generated property pictures as authentic.
(Staff reporter and Reuters)
