Seven Chinese realtors, who were profiting from an online rumor about impending restrictions for recently divorced couples, were arrested last Friday. China's Ministry of Housing has applauded the arrest noted that the group was profiting from a misinformed public.

The rumor stated that mortgage down payment and benchmark interest rates for couples who had been separated for a year or less would rise from September 1.

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An increase in the value of mortgages and sale value was the result of the rumor. It also resulted in a massive increase in divorces towards the end of August as couples sought to avoid the new regulations.

The Shanghai police arrested seven property agents for purposely spreading the rumor to enhance their profit and boost the housing market.

Shanghai laws hinder migrants who have not been registered as Shanghai residents from purchasing homes unless they are married.

China's Ministry of Housing has condemned the rumor, stating that it was ill-advised and further actions needed to be taken.

"This kind of rumor misleads consumers, disrupts market order and has a vile social influence," the ministry said in a statement. "We will increase the force of investigation and prosecution of illegal behavior by real estate agencies and, based on Shanghai's example, multiple agencies will work together to discover and investigate without appeasement."

The ministry added that all agencies that were involved in spreading the rumor would be blacklisted or closed completely. 

Tagschina, Ministry of Housing