Shanghai Municipality Granting of Leaseholds by Invitation for Bids and Auction Trial Measures

Promulgated: July 26 2001
Interpreting authority: Shanghai Municipal Bureau of Housing, Land and Resources Administration

Main contents: The Measures provide that the granting of leaseholds to commercial, tourism, entertainment, financial, service and commodity premises projects shall be subject to invitation for bids or auction (Paragraph One, Section Two). Invitation for bids or auction for leaseholds in relation to any of these projects shall be conducted by the government that is responsible for the examination and approval of the project (Paragraph Three, Section Two). The granting of leaseholds by these methods shall comply with an annual plan formulated by the municipality and implemented at the district/county level (Section Three). Each district/county shall determine the specific land blocks to be granted on the basis of the annual plan (Paragraph One, Section Four). Information on such invitation for bids and auction shall be made available to the public in the municipal real property trading centre (Paragraph Four, Section Four). The Measures for invitation for bids and auction are also set out (Section Five). Upon conclusion of an invitation for bids or auction, the winning party shall pay a leasehold grant fee to the municipality at 30% of the closing price (Section Six).
Related legislation: Shanghai Municipality, Grant of Leaseholds Measures (Revised), May 21 2001, CLP 2001 No.7 p15 and Shanghai Municipality, Implementing the «PRC, Land Administration Law»Measures (2nd Revision), Nov 17 2000, CLP 2001 No.4 p17