New controls clamped on real estate market

SHANGHAI banks are now working out details on the latest state effort to rein in speculation in the real estate market - an increase in down payments and interest rates for people who hold more than one mortgage. The new rules also knock out refinancing of existing mortgages and raise interest on commercial loans. They follow a continuing runup in Shanghai property prices. Among the latest indicators of a hot market, the city's second-hand housing index surged 6.03 percent in August - the highest growth since 2004. The central bank issued a risk warning to commercial banks when Shanghai's August mortgages posted the highest growth since 2005.