foreign investors: The changes include reducing the amount of registered capital foreign investors need to hold before buying real estate and allowing China-based foreigners and companies to buy multiple properties, provided local government housing rules allow them to, according to Euro News. The move is seen by property experts as an attempt by Chinese authorities to stem the flow of capital leaving the country, with foreign investors unnerved by recent gyrations in the country stock market and the unexpected devaluation of the yuan. China announced last week that it was removing a series of cumbersome pieces of regulation on foreign property investment introduced in 2006 that have hindered investors from accessing what was once viewed as one of the most attractive real estate markets in the world. But foreign institutional property investors say while the reforms are welcome, clouds over China growth outlook and concerns the yuan may be devalued further mean worries about the economy trump changes to investment rules. Until two years ago China property market had the perfect combination of attributes for foreign real estate investors- a strengthening currency, climbing rents and rising prices. Potential foreign buyers will likely be concerned about the subdued China economic outlook and a softish renminbi, said Grosvenor Asia Pacific Greater China investment managing director Yu Yang in Hong Kong.
(news.financializer.com). As
reported in the news.
Tagged under foreign investors, local government housing topics.