New rules issued by the China Securities Regulatory Commission (CSRC) are expected to have a negative effect on real estate firms that are in a bad financial situation, reports the China Daily.
Citing the China Securities Journal, the Daily says companies in the real estate business will now need permission from the Ministry of Land and Resources before refinancing. For companies in other industries, refinancing projects will first need to be approved by the National Development and Reform Commission.
Zuo Xiaolei, chief economist of China Galaxy Securities, told the Daily that blocking financial channels is not the solution to stopping property prices from rising. He says that tight control on bank loans should be imposed instead.
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