Rules on property trusts proposed in cooling effort

In a public consultation document published on its web site, the China Banking Regulatory Commission (CBRC) urged curbs be placed on real estate lending and investment by trust companies to reduce the risk of a property bubble in the face of the fastest real estate price increases in eight years. According to the CBRC document, trust companies would have to get its approval to establish real estate investment trusts, or REITs. The commission also proposes guidelines on the size and maturities of REIT products, and sets rules on their financial management.