TWO major Chinese cities of Shanghai and Shenzhen on Friday issued a slew of policies to tame their property markets, including raising down payment requirements for second home buyers.

Under the new rules in Shanghai, which came into effect on Friday, those who already own a house must make at least a 50-percent down payment, instead of the previously required 40 percent, when applying for home loans. The minimum down payment rises to 70 percent if the home's size and price surpass the criteria for an ordinary house.

Non-local buyers must also prove they have paid income tax and social security premiums in the city for five consecutive years, up from two years under the previous requirement.