Businesses rank regulation compliance and access to credit as the two top risks, according to a report Ernst & Young (E&Y) released Wednesday.
The report is based on in-depth interviews with 70 executives and analysts across 14 industrial sectors globally. The E&Y respondents believe that uncertainty around the global regulatory environment is stalling business decision-making and planning.
"Increasingly stringent laws and regulations demand higher standards for business operations," said Mei Fang, partner of advisory services with Ernst & Young Beijing.
Many new regulations have come out this year. Tightening measures released in April on housing prices and restrained bank loans for housing investment to fend off inflation from the lending spree have had the greatest impact on the markets.
The transaction volume of the property sector in many cities have decreased following the tightening policies and prices are expected to decline.
Under the tightening rules, some real estate developers have shown decreased cash flow, making access to credit the number two worry for businesses after regulation.
"Macro-economic controls aimed at preventing overheating affect companies' ability to obtain credit," Mei said.
