Foreign Investment in Guangzhou
The Wall Street Journal reports that officials in the southern Chinese city of Guangzhou are being more aggressive in enforcing laws that prohibit foreign individuals (including residents of Honk Kong, Macau and Taiwan) from buying commercial real estate. Retail property prices in Guangzhou have increased 30 percent in 2011 from the year before, outpacing Beijing and Shanghai.
The concern is that investment-driven growth in the retail market will lead to a bubble. However, analysts quoted in the article note that the rise in prices is due to legitimate growth ant not speculative investing. Furthermore, many of the speculative traders are in fact from mainland China and are not affected by the restrictions.
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Foreign enterprises will still be able to buy and develop retail businesses.
Last Updated on March 13, 2012 by Ramin Seddiq