The Chinese government is disturbed at the run away jump in property prices across all the major cities in the last one year. The massive bank lending to every loan seeker in the last year by all the Chinese banks has led to unexpected increase in investments into commodities and stocks and properties.
All these are now leading to the bubble burst levels, and the Chinese bank wants to avoid the collapse of the system. So the Chinese central bank has raised the bank reserve ratio for the third time in the last three months by 50 basis points. The bank has also warned that there could be more rate hikes in the coming months.