CSRC Says Developers Cannot Refinance to Buy Land or Repay Bank Loans

China Securities Regulatory Commission (CSRC) says developers cannot refinance loans with the goal of buying land or repaying bank loans, which would deliver a blow to speculative and Ponzi finance. (Speculative borrowers need to borrow new to pay old, Ponzi borrowers need to borrow to pay interest)

JRJ: 证监会官员:房企不能将募集资金买地和偿还银行贷款
Commission officials sponsor special training session on Monday pointed out that enterprises raise the refinancing proceeds to discourage used to supplement working capital and repay bank loans and require detailed disclosure of the actual funds raised to invest. It does not allow the real estate business through refinancing of working capital to supplement funds raised can only be used for real estate construction and can not be used to buy land or to repay bank loans.

...Public issuance of convertible bonds does not allow to repay bank loans.
There's always a way around the rules in China. If not, the second-half real estate slowdown is now guaranteed.

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