China raises scrutiny of property sector
BEIJING (Reuters) - China will harden measures against speculation in its red-hot property market by intensifying scrutiny of foreign investment in the sector, according to a government website posting seen on Wednesday.
The Ministry of Commerce, which oversees foreign investment in China, said it would increase checks on property investment involving foreign currencies and ban foreign investors from betting on capital gains.
It did not elaborate on how the ban would be implemented. The statement was seen on the ministry's website (www.mofcom.gov.cn) for the first time and cited by several local news portals on Wednesday, but it was unclear why it was dated Nov 22.
Analysts said the remarks suggested the government was sharpening its rhetoric against hot money inflows into the property sector.
"The measures are the same as before, but the rhetoric is more serious," said Chen Dong, a property analyst at BOC International in Shanghai. "Still, it will be difficult to stop hot money inflows."
China's buoyant property markets have for months unsettled the government, which is worried frothy prices will fuel inflation and a housing bubble that will eventually burst with negative consequences for the wider economy.
The government stepped up its measures to cool property prices in late September by ordering home buyers to pay higher down payments and mortgage rates.
Officials have also tried to staunch speculative investment funds from flowing into the country, with the Chinese foreign exchange regulator stepping up checks on cross-border capital flows.
"This is a reinforcement of rules originally issued in 2007. Some authorities loosened the implementation during 2008 and 2009 amid the global financial crisis," said Wu Tao, chief executive officer of Wins Investment in Beijing.
He added the latest move was also part of China's efforts to rein in foreign investors who are betting on a stronger yuan.
Many Chinese cities have revived their restrictions on foreign property investment in recent months by banning foreigners from buying multiple units, and requiring them to stay in China for at least a year before making purchases.
(Reporting by Langi Chiang and Koh Gui Qing; Editing by Benjamin Kang Lim and Alex Richardson)
- Tweet this
- Share this
- Digg this
- UPDATE 9-Total CEO de Margerie killed in Moscow as jet hits snow plough
- Indiana police charge suspect who may have killed for decades
- Total CEO de Margerie killed in Moscow business jet accident
- China's growth slowest since global crisis, annual target at risk
- Oil falls below $86 as oversupply, global economy worries weigh
As well as making the lives of millions of middle class Indians easier, the sharp drop in Brent crude prices since June is a boon for Prime Minister Narendra Modi in his fight to revive an economy growing at its slowest rate since the 1980s. Full Article
Total CEO de Margerie killed in Moscow plane accident - airport spokeswoman. Full Article