as long as they prevent people from taking on debt in order to invest.

They got into trouble with an overheated housing market and overbuilding because ordinary Chinese had nowhere else to put their money. Had they been able to invest in the market rather than use their cash to leverage real estate debt, the problem there might not be quite as severe as it is with an imploded housing market, a lackluster stock market, and people drowning in debt with nothing to show for it but an unfinished tofu block apartment that will probably collapse under its own weight before the mortgage is paid off.