China has lifted a long-standing restriction that barred foreign companies from purchasing residential properties for non-self-use, as part of the efforts to boost foreign investment and stabilize the country’s beleaguered real estate sector, reports Caixin. The State Administration of Foreign Exchange (SAFE) on Monday issued a notice outlining nine new measures to streamline cross-border investment and financing rules. The reforms further refine the country’s “steady foreign investment” framework, a policy drive Beijing has pursued aggressively since 2023 to counter slowing inflows.
One of the most notable changes is the reduction of the “negative list” for how capital account income can be used. A ban on using such funds to purchase non-self-use residential property has been scrapped. The list now mainly prohibits loans to unrelated firms and direct or indirect investments in securities, except for lower-risk products.
Deputy SAFE head Li Bin said the earlier restrictions were imposed during an overheated property market to curb speculative “hot money” flows. “Today, the market conditions are different, and it is necessary to adjust measures to fit the new reality and support stable growth in the housing sector,” Li said.