China is opening its arms even wider to foreign investors, joining other countries like Saudi Arabia and New Zealand in unveiling similar measures.
The country’s foreign exchange regulator is looking to streamline China’s cross-border investment and financing rules in the hope of larger market reform and attracting overseas capital, Bloomberg reported.
On Monday, the State Administration of Foreign Exchange announced the lifting of restrictions on companies using foreign exchange income under capital accounts for purchasing non-self-use residential property.
The regulatory body also relaxed rules on using foreign exchange for property purchases nationwide, which would allow overseas investors to settle payments earlier. In addition, the regulator tossed out registration requirements for preliminary expenses and reinvestments and will allow foreign exchange profits earned by foreign-invested enterprises to be reinvested in China. The forex administrator also raised foreign debt quotas for high-tech companies to support growth for the booming sector.
The country originally set the property-related policy restrictions to stymie “hot money” in the real estate sector, per Bloomberg. The new rules went into place to back property market development as prices for existing homes declined at an accelerated pace in the past month.
“China’s real estate market conditions have changed and macro-control measures for the industry have been refined and adjusted,” the state regulator said. “Against this backdrop, it has become necessary to optimize and adjust the relevant foreign exchange management measures to better align with the new environment and requirements and to support the steady and healthy development of the property market.”
It follows similar moves thousands of miles to the east and west.
On the other side of the Asian continent, earlier this summer, the Cabinet of Saudi Arabia approved legislation allowing foreign individuals, companies, non-profit organizations and investment entities to own or hold real rights over property across designated zones in the country. Those buyers will enjoy rights of ownership, leaseholds, usufruct and other real estate interests, though they’ll still be subject to certain restrictions based on location, property type and specific usage.
Under the new law, foreign individuals with legal residence in Saudi Arabia will be permitted to own a single residential property outside restricted areas for personal use. Residents of other countries will be allowed to buy into developments in Riyadh and Jeddah starting Jan. 1.
Earlier this month, New Zealand similarly announced plans to allow foreign buyers back into its luxury home market.
If you hold a golden visa for the South Pacific country, you’ll soon be able to purchase homes that cost at least US$3 million. The policy change is set to go into effect until the end of the year.
“By opening our door just a little to allow significant investors to own a home, we will help attract more of those who want to contribute to the community and country,” Prime Minister Christopher Luxon said in a statement, per Bloomberg.
Since 2018, non-Kiwi investors — minus citizens, residents and nationals of Australia and Singapore — have been barred from buying homes in the country as then-Prime Minister Jacinda Ardern attempted to lower housing prices for locals.
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