"Sluggish sales and tight credit controls have forced small enterprises to reduce new construction since the start of the second half of 2012, " Tan Huajie, Vanke's board secretary, said at a news conference Wednesday, adding that he expects there may be insufficient new housing supply in the coming year.

WSJ: China Developer Sees More Weakness

If the EPA can regulate any of those larger industries, what about smaller entities, such as many building and highway construction projects, agricultural operations, big box commercial enterprises, hospitals and even churches that emit lots of greenhouse gases?

FORBES: The Bell Tells For You

While much of this debt is sold by the government for construction projects and bought by state-owned banks and enterprises, corporate debt is rising and represents more than 10%, from around 5% in 2009.

WSJ: China Tightens Rules on Bond Issuance

Not surprisingly, residential construction stocks have ratcheted higher on the news led by Hovnanian Enterprises and PulteGroup, although both have come down slightly from intraday highs.

FORBES: If You Don't Own Home Builders, Don't Buy Them