The Chinese State Administration of Foreign Exchange (SAFE) and the Ministry of Construction have framed rules that detail exactly how foreign investors may deal in domestic properties in the country.

Foreign buyers must deal in Yuan, the local currency, and must have the relevant sales contract and well as the prerequisite documents. Foreigners must also obtain permission before concluding any sales deeds. In addition to these investors wanting to acquire a stake in any Chinese property firms must furnish Yuan and no foreign currency for all transactions.

Also foreign investors who fail to furnish the full amount for their registered property or have less than 35 percent stake in a firm will not be allowed to raise debt offshore. Chinese foreign exchange regulators will also not reject their applications to exchange foreign currencies for Yuan.

These rules came into effect from September 1 and monitoring of foreign exchange used in domestic property trades will be tightened. The local SAFE units are instructed to provide the necessary data on any such transaction in a timely manner.

Source:佚名