Chinese property stocks came under pressure after Beijing introduced new rules aimed at reducing developers reliance on homebuyer funds and curbing risks from unfinished projects. While the measures could improve buyer protection, investors fear they may put greater pressure on highly leveraged developers and accelerate industry consolidation.

The measures aim to shift China’s vast property sector away from a presales model, as Beijing strives to stabilise market downturn.

Mortgages would be issued only when projects are completed under new rules