The China Securities Regulatory Commission issued Opinions on the capital
market’s role in supporting a new real estate development model, stressing
prudent risk prevention and strict enforcement of delisting rules. It requires
delisting supervision of listed property developers to be carried out prudently
and in an orderly way, to clear and broaden diversified delisting channels, and
to coordinate delisting processes with investor-protection measures. For
developers that default on bonds, the CSRC calls for coordination with the
issuer’s municipal government to press firms and major shareholders/ultimate
controllers to mobilize funds, and to advance disposal and clearance of
defaulted bonds under market-based and rule-of-law principles. Regulators will
study and refine a bond-default resolution toolbox and expand diversified
mechanisms for handling real estate bond risks.
