Bloomberg: China to Ask Foreigners for Home Ownership Proof
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http://www.bloomberg.com/news/2010-11-12/china-adds-curbs-for-home-purchases-by-foreigners- securities-times-says.html China to Ask Foreigners for Home Ownership Proof, Securities Times Reports By Bloomberg News - Nov 12, 2010 12:27 PM GMT+0800 China will require first-time foreign buyers to prove t hey don¶t own other proper ties in t he country as it steps up restrictions to curb the flow of speculative money, the Securities Times reported, citing a statement issued by the housing and currency regulator. Foreigners will have to provide statements before home purchases to show they don¶t own other properties in the country, a long with proof of at least a year¶s employment in China, the newspaper said. Overseas companies are only allowed to buy offices in cit ies where they are registered, it said. China¶s central bank raised bank reserve requirements this week to tame inflation and restrain foreign capital after the U.S. Federal Reserve¶s quantitative easing monetary policy. China also has tightened rules on down payments, suspend ed mortgages for t hird homes, and last month raised interest rates for the first time in three years. ³The government aims to curb both property prices and speculative capita l, and the measure may have some impact both on commercial and residential property in big cities where there has bee n more foreign capital,´ said Jinsong Du, a Hong Kong- based analyst at Credit Suisse Group AG. ³But it also depends on how strict they will imple ment the policy.´ The measure on the Shanghai Composite Index tracking property stocks fell 3.2 percent to a one- month low at the 11:30 a.m. break. China Vanke Co. , the country¶s biggest developer, dropped 3.4 percent to 8.87 yuan in Shenzhen, and rival Poly Real Estate Group Co. declined 3.7 percent to 13.43 yuan. New Policy The requirement for home owner ship statements is the first for t he nation, Du said. In the past, foreigners have been able to buy multiple properties in dif ferent cities because t he ownership records were maintained locally, he said. The State Administration of Foreign Exchange and the Ministry of Housing and Urban Development didn¶t immediately respond to a faxed query. The newspaper didn¶t specify when the policy will be effective. China will introduce new rules on currency provisioning a nd tighten management of banks¶ foreign-debt quotas, the foreign exchange regulator said in a statement on Nov. 9, forcing banks to hold more foreign exchange and streng then auditing of overseas fund raising to curb ho t - money inflows that may inflate asset bubbles. China¶s property prices rose 8.6 percent in October from a year earlier, the slowest pace in 10 months, the statistics bureau said this week. The Royal Bank of Canada said after the release of the data that the government would want further easing of property prices and the ³policy bias´ is in favor of more interest rate increases. Policy makers may introduce more measures in the fourth quarter amid signs of a price recovery, according to Nomura Securities Co. The likely policies include a property t ax and the enforcement of the so-called land added-value levy in the ³overheated cities,´ the brokerage said in a Nov. 4 report.
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Transcript of Bloomberg: China to Ask Foreigners for Home Ownership Proof
8/8/2019 Bloomberg: China to Ask Foreigners for Home Ownership Proof
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http://www.bloomberg.com/news/2010-11-12/china-adds-curbs-for-home-purchases-by-foreigners-
securities-times-says.html
China to Ask Foreigners for Home Ownership Proof, Securities Times ReportsBy Bloomberg News - Nov 12, 2010 12:27 PM GMT+0800
China will require first-time foreign buyers to prove they don¶t own other properties in thecountry as it steps up restrictions to curb the flow of speculative money, the Securities Timesreported, citing a statement issued by the housing and currency regulator.
Foreigners will have to provide statements before home purchases to show they don¶t own otherproperties in the country, along with proof of at least a year¶s employment in China, thenewspaper said. Overseas companies are only allowed to buy offices in cities where they areregistered, it said.
China¶s central bank raised bank reserve requirements this week to tame inflation and restrainforeign capital after the U.S. Federal Reserve¶s quantitative easing monetary policy. China alsohas tightened rules on down payments, suspended mortgages for third homes, and last month
raised interest rates for the first time in three years.
³The government aims to curb both property prices and speculative capital, and the measure may have some impact both on commercial and residential property in big cities where there has beenmore foreign capital,´ said Jinsong Du, a Hong Kong- based analyst at Credit Suisse Group AG.³But it also depends on how strict they will implement the policy.´
The measure on the Shanghai Composite Index tracking property stocks fell 3.2 percent to a one-month low at the 11:30 a.m. break. China Vanke Co., the country¶s biggest developer, dropped 3.4percent to 8.87 yuan in Shenzhen, and rival Poly Real Estate Group Co. declined 3.7 percent to13.43 yuan.
New Policy
The requirement for home ownership statements is the first for the nation, Du said. In the past,foreigners have been able to buy multiple properties in different cities because the ownershiprecords were maintained locally, he said.
The State Administration of Foreign Exchange and the Ministry of Housing and UrbanDevelopment didn¶t immediately respond to a faxed query. The newspaper didn¶t specify whenthe policy will be effective.
China will introduce new rules on currency provisioning and tighten management of banks¶foreign-debt quotas, the foreign exchange regulator said in a statement on Nov. 9, forcing banksto hold more foreign exchange and strengthen auditing of overseas fund raising to curb hot -
money inflows that may inflate asset bubbles.
China¶s property prices rose 8.6 percent in October from a year earlier, the slowest pace in 10months, the statistics bureau said this week. The Royal Bank of Canada said after the release of the data that the government would want further easing of property prices and the ³policy bias´ isin favor of more interest rate increases.
Policy makers may introduce more measures in the fourth quarter amid signs of a price recovery,according to Nomura Securities Co. The likely policies include a property tax and the enforcementof the so-called land added-value levy in the ³overheated cities,´ the brokerage said in a Nov. 4report.
