BEIJING, (Reuters) – A media report that China’s authorities were relaxing home purchase policies was denied by the Shenyang property bureau. This would have a positive impact on local property developers and boost market sentiment.

Cailianshe, a state-backed media outlet reported Wednesday that Shenyang’s housing regulator called major property developers and informed them of a relaxation in property purchase restrictions.

According to Shenyang’s local property registration bureau, “we haven’t received any notice regarding loosening (property curbs), and restrictions remain unchanged.” Reuters spoke with them via phone. It was not possible to reach the housing regulator for comment.

The September drop in home prices in Shenyang (a 9-million population city and capital of Liaoning Province) was the first since December 2013.

Local residents currently are not permitted to buy third homes. This is one way to stop speculation. Liaoning warned developers about illegally siphoning away down-payments and false property marketing.

According to Lianjia, China’s largest home broker Lianjia, the regulations remain in force.

Concerns about large property developers in China being saddled with huge debts have shaken sentiments. China’s real estate market accounts for 25% of China’s gross domestic product according to some metrics.

Harbin in northeastern Heilongjiang was the capital and first city to announce last month that it would support local property developers.