Warnings in China over “negative down payments” for home, property buying, | Forexlive

China’s Global Times carried this piece over the weekend, in brief:

Some real estate agencies have been marketing homebuying with “zero down payment” or “negative down payment” so that consumers not only don’t need to pay for down payment but also can obtain funds for future renovation, according to media reports.
the so-called “negative down payment,” the report said that it is executed through developers using down payment installments and returning down payment to buyers or setting a relatively high contract price for consumers to apply for a larger bank loan.
If the funds returned to the buyer from the developer, or the bank loan secured against the property exceed the original down payment, the a “negative down payment” is “achieved,”
The Shenzhen Real Estate Intermediary Association on Friday issued the reminder to caution the market, stressing that the so-called practices of “zero down payment” and “negative down payment” violate China’s financial and credit policies.