The Chinese government has struck an agreement to curb foreign investment in Chinas property market.

Foreign firms or individuals will now have to use their real names when buying residential property in China. The rule also states that foreigners cant buy residential accommodation in the country, unless it is for their "own use or own habitation."

Professor Xu Dianqing of the China Centre for Economic Research of Peking University, said: "The measure provides a premise for the government to impose a property tax, which has been very popular in most developed countries.

"A property tax would demand a register of names, and it would be the best way to restrain speculation on the property market."