In an effort to regulate foreign investment in its real estate
sector China issued new guidelines covering the sector on
Monday.
The proposals include an increase in the ratio of registered
capital in property developers' overall investment and restrictions
on residential property purchases by foreign institutions and
individuals.
They're part of the government's efforts to regulate China's
real estate market and to improve the efficiency of utilizing
foreign investment.
The proposals were issued by the Ministry of Construction, the
Ministry of Commerce, the National Development and Reform
Commission, the People's Bank of China, the State Administration of
Industry and Commerce and the State Administration of Foreign
Exchange.
The guidelines also provide details about projects, shares,
loans and any foreign exchange sales of foreign-invested real
estate enterprises.
According to the proposals foreign institutions establishing a
presence or representative offices in China and individuals working
or studying in China for over one year can purchase homes for their
own use.
The proposals also order local governments to monitor foreign
investment in China's real estate market.
China has taken a series of measures this year to control the
real estate market in response to concerns over excessive foreign
investment. This sector has absorbed the majority of foreign
investment.?
Newly established foreign-invested real estate businesses
increased by just over 25 percent in the first half of this year
compared with the same period last year. Foreign capital actually
utilized was up 27.9 percent.
Foreign exchange sales of foreign institutions and individuals
for purchasing commercial houses have been doubled in the first
quarter.
(Xinhua News Agency July 24, 2006)