Policies Adjusted on Market Access and Administration of Foreign Investment in Real Estate Market

source：　 date：2015-09-07　 author：

Recently, six departments including the Ministry of Commerce and the Ministry of Housing and Urban-rural Development have jointly issued the Circular on Adjusting Policies on the Market Access and Administration of Foreign Investment in the Real Estate Market (the "Circular").

According to the Circular,

I. Regarding the requirement on the ratio between the registered capital and total investment of a foreign-invested real estate company. The previous requirement of no less than 50% is cancelled. Under the new policy, the general rules on the ratio between the registered capital and total investment of ordinary foreign-invested enterprises apply to foreign-invested real estate companies too. In the case of the projects with total investment of more than 30 million, the ratio can be as low as 1/3.

II. The requirement that the registered capital shall be fully paid up by foreign-invested real estate enterprises to apply for domestic loans, overseas loans, and the settlement of foreign exchange loans is cancelled.

III. The Circular clarifies that branch offices or representative offices of foreign entities and foreign individuals living in China may purchase houses in China for their own use or living, subject to the local policies of the cities that implement rules on house purchase limits.

IV. Foreign-invested real estate enterprises may, in accordance with relevant administrative provisions on foreign exchange, directly handle the relevant foreign exchange registration under the direct foreign investment item with the banks.

(Source: http://www.mofcom.gov.cn/article/b/f/201508/20150801093662.shtml)