Headline is here from earlier:

As background,

The three red lines were introduced in August 2020 when Chinese property was rising in price very strongly indeed.

They stated property should adhere to the following rules:

1. Liabilities should not exceed 70% of assets (excluding advance proceeds from projects sold

2. Net debt should not be greater than 100% equity.

3. Money reserves must be at least 100% of short-term debt.


The market response to the news was a higher yuan, AUD

and NZD
. The pop was relatively minor for AUD and NZD, yuan has carried on a bit more.

Chinese property shares had risen substantially earlier ion the session on earlier news and have not thus seen notable gains on this new item.

china property 06 January 2023