Analysis: China’s Property Overhaul Targets Shadow Banking, Local Debt Risks

China’s sweeping property finance overhaul encompasses strict new guardrails for real estate trusts, commercial property loans and urban renewal projects, aiming to build financial firewalls beyond the residential mortgage market.

The comprehensive guidelines, released Friday by the National Financial Regulatory Administration and relevant departments, are designed to curb risks stemming from the prolonged property slump, particularly in shadow banking and local government financing.