China has pledged to empower local governments with city-specific measures to clear housing gluts and optimise supply next year, reports the South China Morning Post. The move is aimed at ramping up efforts to stabilise a real estate market that has been in downfall.

“Municipal governments should fully utilise their autonomy in regulating the property market, adjusting and optimising policies as appropriate,” said Ni Hong, the minister of housing and urban-rural development.

To mitigate delivery risks in commercial housing, the ministry is pushing for a shift towards selling completed homes in a “what you see is what you get” model. While for projects that continue to operate on the traditional presales model–a key amplifier of the property crisis–Ni called for stricter oversight of funds to ensure that homebuyers’ rights are protected.

China’s trust sector returned to profit growth in the first half of this year, following a regulatory overhaul aimed at curbingshadow banking risks, reports Caixin.

Total profit at China’s trust companies edged up 0.45% year-on-year to RMB 19.7 billion ($2.8 billion) in the period, supported by rising revenue, data from the China Trustee Association showed. Despite the rebound, profit levels remain well below historical highs, reflecting the sector’s ongoing transition.

The profit rebound follows regulatory changes rolled out in 2023 that pushed trust companies away from channel-style lending — particularly to property developers — and toward standardized asset management and service-oriented businesses.

Creditors are holding a vote on whether to give Vanke, which has $50 billion of interest-bearing liabilities, more time to forestall a default, reports Bloomberg. If they vote not to, it would mark a new phase in the country’s real estate woes that have already prompted $130 billion of defaults as well as restructurings and liquidations at other developers, including giants like Country Garden Holdings and China Evergrande Group.

Vanke was  once the country’s biggest developer before it succumbed to an unprecedented property crisis. Holders of Vanke’s RMB 2 billion ($284 million) bond have until 10am to vote on whether they’ll allow the distressed builder to delay principal payments by 12 months or give it until January 28 to further negotiate the terms. The company didn’t pay the note by its December 15 maturity, leaving it in a grace period until the end of Monday.

If the day ends without payment or agreement to extend it, holders could tip the builder, which has roughly $160 billion of assets and more than 125,000 employees, into default.

Italian luxury sneaker maker Golden Goose said that Chinese private equity firm HSG, formerly known as Sequoia Capital China, had become its majority shareholder after buying a stake from current owner Permira, reports Reuters. Singapore’s investment firm Temasek, alongside its subsidiary True Light, has also bought a minority stake in the Venice-based maker of sneakers that retail starting at €500 a pair.

The accord gives Golden Goose a valuation of around €2.5 billion ($3 billion) including debt, a source close to the matter said. The statement did not disclose financial details.

Permira, which acquired Golden Goose in 2020 paying €1.28 billion, will retain a minority stake alongside other existing shareholders including Carlyle, the company said.

China’s overseas bank lending has tripled in four years to RMB 2.52 trillion yuan and sales of onshore and offshore yuan debt are at or near records for the second year running, reports Reuters, as attractive pricing makes yuan poised to overtake overseas dollar loans at Chinese banks.

Bankers say the boom is encouraged by cost, because yuan rates are low. But the market is also starting to generate its own momentum and a deepening pool of demand to own and spend yuan—a sign China’s drive to globalise the currency is making headway even without progress to liberalise capital accounts.