China’s financial regulator vows to tackle property and local debt risks
China’s financial regulator has pledged to prevent systemic financial risks and resolve exposures in real estate and local government debt.
The regulator’s statement highlights the interlocking vulnerabilities in China’s financial system, including real estate and local government debt.
China house prices fell 3.5% year-over-year in May 2026, unchanged from the prior month.
The regulator’s pledge suggests a continued policy tilt away from old-economy sectors, with implications for sector allocation within China-exposed portfolios.