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)