Notice of the Ministry of Housing and Urban-Rural Development, the Ministry of Commerce, the National Development and Reform Commission, The People’s Bank of China, State Administration for Industry & Commerce and State Administration of Foreign Exchange on Adjusting the Policies on the Admission and Administration of Foreign Investment in the Real Estate Market

J.F. [2015] No.122

People's governments of the provinces, autonomous regions and municipalities directly under the central government, and the ministries, commissions and agencies of the State Council:

In order to promote steady and healthy development of real estate market, upon the approval of the State Council, it is decided to adjust some policies included in Opinions on Regulating the Admission and Administration of Foreign Investment in the Real Estate Market (J.Z.F. [2006] No.171) about the purchase of real estate by foreign-funded real estate enterprises, foreign organizations and individuals, relevant matters are hereby noticed as follows:

I. Proportion of registered capital of a foreign-funded real estate enterprise to its total amount of investment shall be carried out in accordance with Interim Provisions of the State Administration for Industry & Commerce Concerning the Proportion of Registered Capital to Total Amount of Investment of Chinese-Foreign Joint Ventures t (G.S.Q.Zi [1987] No.38).

II. The regulation that foreign-funded real estate enterprises must fully pay up registered capital in settlement of domestic loan, foreign loan and foreign exchange loan is cancelled.

III. Branches and representative offices of a foreign organization (except the enterprises approved to engage in real estate) and overseas individuals that work and study in China can purchase owner-used and owner-occupied commercial residential buildings meeting their actual demands. In the cities that restrict house purchase, overseas individuals shall follow local policies.

IV. Ministry of Housing and Urban-Rural Development, Ministry of Commerce, National Development and Reform Commission, The People’s Bank of China, State Administration for Industry & Commerce, State Administration of Foreign Exchange and other departments will further simplify procedures, improve work efficiency, optimize and improve the administration of real estate purchased with foreign investment. As of the date of promulgation of this notice, foreign-funded real estate enterprises can directly go to a bank to make relevant foreign exchange registration under FDI according to related regulations of foreign exchange administration.

Except the above policy adjustments, Opinions on Regulating the Admission and Administration of Foreign Investment in the Real Estate Market (J.Z.F. [2006] No.171) remains in force.

Ministry of Housing and Urban-Rural Development of the People’s Republic of China

Ministry of Commerce of the People’s Republic of China

National Development and Reform Commission of the People’s Republic of China

The People’s Bank of China

State Administration for Industry & Commerce of the People’s Republic of China

State Administration of Foreign Exchange

August 19, 2015

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