Draft partnership regulations simplify real estate investment

China's cabinet has proposed draft rules which could provide a new way for foreign investors to raise money onshore for real estate investment funds.

Current rules cover only four municipalities and allow foreign investors to come onshore and set-up and manage so-called RMB funds (onshore funds denominated in renminbi) for real estate and other sectors. These funds are designed to raise money only from local investors, however. The State Council's new draft Administrative Measures for the Establishment of Partnership Enterprises by Foreign Entities or Individuals in China, if promulgated in the same form, will allow both offshore investors and onshore investors to invest in the same onshore fund. This will make it easier to invest money from overseas.