Reuters with a brief report, link here, in summary:
Chinese policymakers plan to exclude debt accrued from acquiring distressed assets when calculating property developers’ compliance with the “three red lines”, financial intelligence provider REDD reported on Friday
“three red lines” policy restricts the amount of new borrowing property developers can raise each year by placing caps on their debt ratios
Check out that link above for the piece, its a quick read.
The Chinese property sector is facing liquidity issues, authorities are trying to address problems.