Banking regulators in Shanghai have suspended the real estate mortgage cooperation between commercial banks and six real estate agencies. That's to strengthen supervision of the property market.

The suspensions started Monday, and will last for one month.

The Shanghai office of the China Banking Regulatory Commission investigated the city's real estate agencies and found that some brokers had engaged in illegal activities before new real estate loan rules were released.

The six agencies occupy about 50 percent of Shanghai's property agency market share. Experts say the suspensions will have some effect on the market regulation.

"The suspension makes future loans have to go through legal channels, and it will have a regulating effect to the property market. For Shanghai, the illegal acts only had some impact, as the inventory pressure of the city is not big, or even a lack of inventory. Generally, there's still space for increases in Shanghai's home prices," said Yan Yuejin, E-House China R&D Institute.