BEIJING • A surge in real estate prices in Shanghai and Shenzhen has prompted the authorities to rein in speculation, in line with the Chinese government's resolve to keep the property market in check. Shanghai officials unveiled policies late on Thursday to cool the local market, including a measure designed to plug a loophole long exploited by buyers using fake divorces to become eligible to purchase more properties or obtain mortgages. The city will also levy a tax on sales of houses purchased within five years, up from the previous two-year barrier. This is "aimed at resolutely enforcing the decisions of the central committee of the Party" and "firmly upholding the policy stance that houses are for inhabiting, not for speculation", the Shanghai municipal government said in a statement, referring to President Xi Jinping's vow first made in 2017 to boost housing affordability. With the new policy, Shanghai follows big cities including Shenzhen and Hangzhou to crack down on housing speculation via fake divorces since 2018. As most Chinese cities limit home-buying demand by capping the number of properties a family can own, divorce becomes a way to bypass the restriction. In Shangh...