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🇦🇹 Austria /Economy & Trade

After Evergrande, China tightens rules on property financing

From Der Standard · () German

Translated from German and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement Approved/passed
  • China has tightened property-financing rules, including a ban on selling homes before they are completed.
  • The measure removes a major source of cash flow for developers, while property stocks fell sharply in Shanghai and Hong Kong.
  • The changes follow the collapse of Evergrande, whose founder Xu Jiayin was sentenced to life in prison by a Shenzhen court for eight economic offenses.

China is moving to reshape its property market after the collapse of Evergrande, with new financing rules aimed at developers that sell homes before construction ends.

Under the new requirements, builders may no longer sell unfinished apartments. That removes a key source of cash flow for projects and has put pressure on property shares in Shanghai and Hong Kong.

The changes follow turmoil surrounding Evergrande, where thousands of buyers lost money after purchasing homes that, in some cases, were never completed. The developer’s collapse exposed the risks of relying on advance sales to finance construction.

Evergrande founder Xu Jiayin, also known as Hui Ka Yan, received a life sentence from a court in Shenzhen in August. The Intermediate People’s Court found him guilty of eight economic offenses, including large-scale financial fraud, embezzlement, bribery and the fraudulent issuance of securities.

About this summary

Originally published by Der Standard in German. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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