China unveils policies to regulate foreign investment in real estate
Friday, 15 June 2007
BEIJING, June 14 (CEIS): China's Ministry of Commerce listed a number of measures to ensure control over direct investment of foreign fund in the real estate sector, as the country strives to avoid international speculative money to create bubbles in the sector.
Local commerce departments should strictly limit foreign investment in luxury real estate, the ministry said in a document published on its website yesterday.
It reiterated foreign investors need to establish a real estate company before they can invest in real estate projects, and they should also get approvals from relevant department to expand their business scope in order to invest in new real estate projects.
The ministry said foreign investors are not allowed to bypass the above regulations by investing in domestic real estate companies via acquisition or changing the real controller of the domestic companies.
Local commerce departments should strictly limit foreign investment in luxury real estate, the ministry said in a document published on its website yesterday.
It reiterated foreign investors need to establish a real estate company before they can invest in real estate projects, and they should also get approvals from relevant department to expand their business scope in order to invest in new real estate projects.
The ministry said foreign investors are not allowed to bypass the above regulations by investing in domestic real estate companies via acquisition or changing the real controller of the domestic companies.