(Yicai Global) April 27 -- KE Holdings, also known as Beike Zhaofang, denied that a senior executive at the Shenzhen branch of China’s biggest online real estate agency said the southern city was about to ease restrictions on home buying.

“The contents of the screenshot circulating online are fake,” Beijing-based KE said in a statement released today. The firm has reported the matter to the police and will take legal action against the rumormongers because the matter has seriously damaged its reputation and disrupted the market, KE added.

A screenshot of alleged conversations in a WeChat group named ‘Senior Management of KE Holdings Shenzhen’ circulated on social media yesterday. In it, a senior executive said Shenzhen plans to ease up on home buying and mortgage restrictions.

Even if a potential buyer has a national mortgage record, they will still be able to take advantage of a 30 percent downpayment on property as long as the previous loans were paid off, the screenshot showed, adding that Shenzhen would issue the new policy as soon as on May 1.

The city currently stipulates that buyers with a national mortgage record, regardless of whether the loans were paid off, need to make a 50 percent downpayment. Those who have no loan record and no property in their name can enjoy the preferential rate.

KE said its senior executives do not have a WeChat group named ‘Senior Management of KE Holdings Shenzhen.’

Data from Centaline Property’s research institute show that this month alone more than 30 cities, including Shenyang, capital of northeastern Liaoning province, Wuxi in eastern Jiangsu province, and Tianjin, started to relax housing market regulations.

Editor: Peter Thomas