Construction: Restrict speculation
(Chinanews.cn)
Updated: 2006-06-02 14:21
According to a report by Shanghai Securities News, overseas capital has not
been carefully watched over as a source of funding for real estate development.
But it was understood that China's Securities for Foreign Exchange
Administration (SAFE) has begun to strengthen its supervision in this arena and
it is probable that strict rules against foreign speculation in real estate will
be enacted in short order.
In the second half of April, SAFE's capital account supervisory deputy chief
Sun Lujun said that SAFE has been on a high state of alert regarding the sharp
increase in foreign capital in China's property market and "other investments"
and is actively discussing appropriate countermeasures. Prior to this remark,
statistical bureau spokesperson Zheng Jingping has publicly called for the
appropriate adjustment of policies governing the direct entry of foreign capital
into real estate arenas.
Afterwards, in the end-of-April SAFE International Balance of Payment Annual
Report, mention was made of the high-level attention paid to the role of foreign
capital in China's property markets in order to "preserve the economic and
financial security of the nation." Statistics show that in 2005, foreign capital
bought US$3.4 billion worth of Chinese property. However, due to imperfections
in methods of collecting these statistics, a large amount of foreign funds
invested in China's real estate have escaped recognition and the latter has
directly contributed to the endless rise in China's property
prices.
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