China eases housing investment rules for foreigners
August 31, 2015 - China
China has relaxed rules on property sales to foreigners, in a move seen as aimed at boosting the country’s real estate sector amid a slowing economy.
Foreign institutional investors no longer had to pay registration fees when taking out domestic and foreign loans to finance their property purchases or when settling foreign exchange transactions, the Commerce Ministry said.
Foreign individuals and companies were also now free to buy as many properties as they wished, as long as they stay within the limits of local housing purchase limits where they exist.
Previously, foreign residents were allowed to own no more than one property in mainland China, and only after they had worked in the country for a year.
Allowing foreigners to invest more freely in China's housing market could bolster growth in a key part of the Chinese economy, which is otherwise struggling with a cooldown in exports, factory output and domestic investment.
A plunge in China's stock market in the summer followed by another bruising fall this week also sent shockwaves across the world, leading some investors to fear the Chinese economy is headed for a hard landing.
To prevent the world's second-largest economy from hitting the skids, China has ushered in a flurry of support measures this year that include this week's interest rate cut, the fifth since November.
Worth around 15 percent of the economy, China's housing market has stabilised in recent months, helped in part by the rate cuts.
Trends, property investment, Chinese investors, Investment property, foreign investors