In March, property prices in 70 Chinese cities rose by a record 11.7 percent year-on-year. In response, the government issued a series of measures to curb the housing market amid concern over asset bubbles.

The next month, however, housing prices rose 12.8 percent year-on-year, raising fears over the overheated property market.

After the People's Bank of China raised the reserve requirement ratio for major banks by half a percentage point in early May, property stocks were expected to drop further. And the Shanghai municipal government is likely to follow the example of Beijing and Shenzhen and issue regulations to curb speculation and rising prices in the property market.