China’s financial regulators have slapped their most draconian rules yet on the 16 trillion yuan (US$2.5 trillion) real estate industry, hitting the country’s highly leveraged developers where they hurt most: their bank loans.A new concentration management system (CMS), which took effect on January 1, limits banks’ property-related lending to their capitalisation based on a five-tier grade. The central bank’s much-vaunted “three red lines” – financial requirements that decide whether developers…



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