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          BIZCHINA> Top Biz News
          No policy change on foreign investment in property sector
          By Hu Yuanyuan (chinadaily.com.cn)
          Updated: 2008-12-22 17:24

          At present, the government has no plans to change its policies on foreign institutions' investment into China's property sector but may take a more flexible approach in the approval process, sources told China Daily today.

          "So far, we haven't received any order to revise relevant policies on foreign investors' entry into the real estate sector," said an official from the Ministry of Commerce, who declined to be named.

          Special coverage:
          Housing in China
          Related readings:
          No policy change on foreign investment in property sector China cuts property taxes to boost ailing market
          No policy change on foreign investment in property sector China's property climate index declines in Nov
          No policy change on foreign investment in property sector Govt pondering tax cuts to heal property wounds
          No policy change on foreign investment in property sector Property price growth in major Chinese cities drops to three-year low
          "But as the examination and approval rights have been transferred to the local commerce bureaus, they can take a more flexible approach on each property project, such as speeding up the approval process," he added.

          In the past few months, the Chinese government has launched a slew of measures to revitalize the property sector which is one of the biggest drivers of domestic consumption, contributing a quarter of all fixed-asset investments and employing 77 million people.

          However, none of these measures involves foreign institutions' investment into the property sector.

          "Before the government sees a clear trend of the foreign capital's flow, it will not rush into a decision on this problem," a source with the China Real Estate Association told China Daily.

          The association has proposed many ways to reactivate the property sector to the State Council, China's cabinet, with most of them eventually adopted. But among their proposals, none concerned the entry of foreign investment into the property sector, the source said.

          "We do notice that some foreign capital is fleeing, but at the same time, some new comers also plan to enter the Chinese market since the property price is at a comparatively low level," said the source.


          (For more biz stories, please visit Industries)

           

           

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