The latest move by Chinese central bank to “fine tune” its monetary policies does not mean that the government starts loosening control over the real estate sector,a state paper said.

The latest move by Chinese central bank to “fine tune” its monetary policies does not mean that the government starts loosening control over the real estate sector, and it will not help bolster housing prices either, the People’s Daily said Thursday.

This has been the first time for an official media outlet to make such clarification after the cut of reserve requirement deposit ratio for banks Wednesday raised concerns that the newly freed-up liquidity would prop up the struggled real-estate sector.

As the cut in RRR will partly increase the money supplies, and theoretically that should help developers get loans and support home buyers with mortgages; however, against a backdrop of property controls, that should depend on bank’s policies, the newspaper said, quoting a top executive with a housing agency.

Moreover, the moderate move by the central bank does not necessarily signal easing in property controls, which have so far largely based on restrictions of purchasing and borrowing.

As Premier Wen Jiaobao and Vice Premier Li Keqiang have repeatedly stated, at a “critical period of real estate controls”, that the government still has a firm stance in controlling prices of houses, the newspaper said.

China on the last day of November surprisingly cut the RRR by 50 basis points, the first time in nearly three years amid a slowing economy and European crisis.

Many doubts however, the move will dampen government’s efforts that have lasted for more than a year to rein in the bubbling real estate sector.

The move shows “clear signs” that the government is supporting the housing market by stinging the strong home-buying demand and rescuing local governments from fiscal strains, said Ye Yan, a renowned financial commentator.