The Chinese government's efforts to arrest fears of a property market bubble by introducing a series of cooling measures could still keep long-term demand-supply dynamics favorable for businesses, the chief executive of a U.S.-listed Chinese online-to-offline real estate services company told CNBC.
Last year, several Chinese cities tightened rules for home purchases, including Beijing, which increased the down payment required on real estate buying. First-time buyers are now required to put a down payment equivalent to 35 percent of the property's purchase price, up from 30 percent. For people buying their second property, they will have to put down at least half of the selling price.
Yinyu He, CEO at Leju, told CNBC's "Squawk Box" on Tuesday, "We understand that the policies aim to cool down the overheated market ... however, the local governments imposed very strict limitations on the marketing activities of developers, which imposed a negative impact to our business."
Leju reported earnings on Monday, where fourth-quarter revenue fell 39 percent to $104.9 million on-year and quarterly net loss was $26.4 million compared with a net income of $12.8 million a year earlier.
In a separate earnings statement, He said the cooling measures, which took effect in the fourth quarter of fiscal 2016, led to reduced transaction volume and demand for marketing activities from developers across all major cities in China.