China's CSRC Issues Opinion on Capital Market Support for New Real Estate Development Model

China's securities regulator has issued an opinion on supporting the construction of a new real estate development model through the capital market, with a focus on preventing and defusing capital-market risks in the property sector, according to Jiemian News. The China Securities Regulatory Commission (CSRC) said it will strengthen monitoring of real estate-related risks, improve early identification, warning, exposure and disposal mechanisms, and enhance coordination between risk monitoring and regulation. It also called for closer tracking of cross-risk points involving property developers' stocks, bonds and asset-management products. The opinion said the CSRC will strictly enforce delisting rules and manage the delisting of listed property developers in an orderly manner, while keeping investor protection measures in place. For property developers that default on bonds, the regulator said it will work with city governments where the companies are registered to push the firms, their major shareholders and actual controllers to raise funds and resolve the defaults in a market-based and law-based manner. It also said it will study and improve tools for handling bond-default risks and diversify mechanisms for resolving property bond risks. The CSRC added that it will improve policy communication and coordination with industry regulators and local governments to help keep the property market stable and healthy.