Loosening foreign investment in real estate and stimulating debate

Interview • Author/Shikung in the first 5 months of this year, China attracted foreign investment totaling 34.05 billion U.S. dollars, falling 20.4%--FDI (foreign direct investment) continued decline of the relevant policy departments to sit, according to a media report, A proposal containing 42 specific proposals for stabilizing foreign investment has been submitted by the Ministry of Commerce to the State Council. Among the major adjustment policies will be the loosening of foreign investment in China's real estate sector: The Ministry of Commerce recommends that the joint safe should simplify and appropriately relax foreign exchange registration procedures for foreign-invested real estate companies.　　In this respect, the people in the financial sector and the real estate industry are totally at odds.　　June 19, the Ministry of Commerce announced that FDI in May fell 17.8% to only 6.379 billion U.S. dollars, for the 8th consecutive month since October last year, fell, but also since the 1998 Asian financial crisis, the first absorption of foreign investment in a comprehensive and sustained decline. Since the 2007 macro-control, the government's restrictions on foreign investment in real estate more than other industries. This is one of the reasons why this time, "untie" foreign investment to choose the real estate industry. Guo Tianyong, director of the China Banking Research Center at the Central University of Finance and Economics, said the real estate industry is indeed an important "point" in attracting foreign investment, and that real estate is also important for the economy to rebound. This year, foreign direct investment has a relatively large decline, increasing the amount of foreign investment is particularly important, and from last year to now the government to support the real estate policy is also more.　　Guo Tianyong suggested that for foreign buyers of residential commercial housing should be implemented within and outside the same principle. The Great Wall Securities analyst Huang Qinglin also thinks it is necessary to open foreign investment in real estate. He believes that the real estate industry accounted for about 20% of domestic fixed assets investment, the contribution to national economic growth is considerable; Moreover, real estate is a long industry chain industry, upstream and downstream including home appliances, decoration and other industries closely related to the real estate industry. Therefore, the choice of real estate industry as a stable foreign investment has certain feasibility.　　In fact, the deregulation of foreign companies in the short term has a certain support for housing prices, but in the long term, conducive to increasing market supply, thereby stabilizing prices. and the financial industry in the open real estate investment support attitude is completely different, the reporter interviewed the real estate industry people to open foreign investment property are opposed. "It's all a headache, doctor.　　"An industry researcher, who declined to be named, so evaluated the opening up of foreign investment in real estate. Zhongyuan Real Estate Investment Department general manager Zhang Kunyi to reporters expressed his concern, she believes that the current real estate market due to inflationary expectations of the impact of liquidity has been sufficient, foreign investment is easy to push higher prices, and foreign investment into the development link can not see what benefits.　　Another industry personage uses the word "fuel" to describe to open foreign investment real estate, he thinks the real estate market already xuhuo too flourishing. The industry believes that if the further laissez-faire funds into the real estate market, will cause the Hainan real estate bubble national, and will cause the national next batch of projects rotten tail. "Local governments rely heavily on loans to dismantleMove, push, hope that developers will come to develop, developers a lot of development projects, hope that consumers have the money to buy, but consumers do not have the ability to consume, the final project only rotten tail. "It is unrealistic to expect the housing market to return to its 2007-year status," he said. "There are also analysts think that foreign investment has already entered the real estate market in the middle of June 2007, the real estate was announced into the" Restricted category "list of foreign-funded enterprises, but with the advent of the financial crisis, the real estate markets to cool, many local governments have loosened the restrictions on foreign investment in real estate Beijing's government eased restrictions on foreign purchases of real estate in 2009, but noted that the ban was only one year. April 2009, Shenzhen also announced the liberalisation of foreign purchases of real estate restrictions.　　May 2009, the director of the Beijing Land Reserve Center revealed that the use of foreign exchange to pay the land transaction margin, to relax the relevant restrictions on foreign participation in land bidding. "Even if it is open to foreign investment in real estate development links, it does not necessarily work, the current economic situation is very delicate, foreign capital is not necessarily willing to risk participation in development." The analyst told reporters, "even if foreign participation in the development of the property market is still the fuel, but the fire is not the same place." "He believes that the departments concerned should be targeted to attract foreign investment, rather than such a disease in a disorderly and touyi way to absorb foreign capital into the original liquidity already surplus property market often