General Office of the Ministry of Commerce, Circular on Strengthening the Administration of the Examination and Approval and Record Filing of Foreign Investment in the Real Property Sector

Issued: November 22 2010

Main contents: For real property projects that involve the inflow of foreign exchange, the competent commerce department at the provincial level shall, when checking the materials submitted for record filing, make the focus of its check the determination of whether or not the land documents are complete (Article 1). Real property enterprises established in China with foreign capital may not seek to profit by arbitraging on the purchase and sale of existing real property/real property under construction (Article 2).

Competent commerce departments of all regions may not approve companies with an investment nature that are involved in the business of developing and operating real property (Article 3), and they shall, in concert with relevant departments such as the administration of foreign exchange, carefully discern and stringently review real property enterprises that involve round-trip investment and stringently control the establishment in China of real property enterprises with round-trip investment (Article 4).