China’s property sector showed a sharp split on Aug. 31 after authorities unveiled a real estate regulatory overhaul focused on reducing developers’ reliance on presale deposits and strengthening project financing. The CSI 300 Real Estate Index fell 2% in morning trading, while a Hong Kong-listed developer index dropped about 4%. Shenzhen SEZ Real Estate & Properties and Shenzhen HeungKong Holding each declined about 5%, and Shenzhen Tefa fell nearly 8%. At the same time, 5i5j Holding Group, Shenzhen Tefa Service and World Union opened at their daily limit-up after the People’s Bank of China and the National Financial Regulatory Administration extended the maximum individual mortgage term from 30 years to 40 years. The rules also introduce lead-bank supervision for development loans, cap financing terms for presale and completed-property projects, and generally defer principal repayment until after completion filing. Everbright Securities said the measures raise requirements for developers’ financing and operating capabilities, leaving smaller firms vulnerable to consolidation as transaction volumes and new capital inflows remain subdued.