Development Loans Halted in China to all but 16 State Owned Firms

Only state controlled developers are allowed loans now. One might see this as a political move as well as a fiscal one. One expects this will push up the percent of foreign capital used for development. Tangled webs and all that.

China banks told to tighten grip on property lending

Domestic media reported earlier this week that CBRC ordered banks to confine their new loans to 16 developers on the list.

China ordered state-owned firms to divest from the real estate industry, except those with property development as their core businesses.

In the end, we may be able to estimate the size and leverage of the shadow banking system by virtue of how much real estate activity is left after it is the sole source of funding.