The file photo shows the Shanghai Tower, China's tallest skyscraper, in Lujiazui, the financial and trade zone in Shanghai. [Photo/IC]

BEIJING - China will act to prevent rumors in the property market as home buyers have become highly sensitive under pressure from high prices in large cities.

Shanghai police have detained seven real estate agents for spreading rumors about new home purchase restrictions blamed for a jump in divorce rates and a buying frenzy in the city.

The Ministry of Housing and Urban-Rural Development endorsed the action on Saturday, saying such rumors "misled consumers and disturbed the market."

Local authorities should use Shanghai's experience for reference and toughen up penalties on irregularities by real estate agents, the ministry said, adding it will supervise the handling of serious cases.