Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)
Real Estate Services
Relevant Mainland Rules and Regulations
Rules and regulations promulgated by the Mainland authorities relating to the implementation of commitments under CEPA :
Development of Real Estate
- According to the "Notice on the Updates of Policies on Entry and Administration of Foreign Investment in Real Estate Market" (Circular of the Ministry of Construction and the Ministry of Housing and Urban-Rural Development No. 122 - Aug 2015) (in Chinese only), the proportion of registered capital and total amount of investment in foreign-funded real estate development enterprises shall abide by the "Interim Provisions of the State Administration for Industry and Commerce Concerning the Proportion of Registered Capital and Total Amount of Investment of Chinese-foreign Equity Joint Ventures" (Circular of the State Administration for Industry and Commerce No. 38 - Feb 1987).
- Where the total amount of investment of the Sino-foreign equity joint venture is less than USD 3 million (including USD 3 million), the registered capital shall account for seven tenth of the total amount of investment at least.
- Where the total amount of investment of the Sino-foreign equity joint venture is between USD 3 million and USD 10 million (including USD 10 million), the registered capital shall account for at least half of the total amount of investment. Where the total amount of investment is less than USD 4.2 million, the registered capital shall not be less than USD 2.1 million.
- Where the total amount of investment of the Sino-foreign equity joint venture is between USD 10 million and USD 30 million (including USD 30 million), the registered capital shall account for two fifth of the total amount of investment at least. If the total amount of investment is less than USD 12.5 million, the registered capital shall not be less than USD 5 million.
- Where the total amount of investment of the Sino-foreign equity joint venture is over USD 30 million, the registered capital shall account for at least one third of the total amount of investment. If the total amount of investment is less than USD 36 million, the registered capital shall not be less than USD 12 million.
- The qualification of real estate development enterprises is divided into level 1 to 4 in light of the conditions of the enterprises; the enterprises shall operate real estate development businesses according to the stipulated scope of practice of their respective level. For details, please refer to the "Administrative Provisions on the Qualification of Real Estate Development Enterprise" (Decree of the Ministry of Construction No. 77 - Mar 2000) (in Chinese only) and the Decision on Modification of "Administrative Provisions on the Qualification of Real Estate Development Enterprise" and Related Regulations (Decree of the Ministry of Construction No. 24 - May 2015) (in Chinese only).
- For other regulations on foreign enterprises investing in real estate development enterprises, please refer to:
- "Law on the Administration of Urban Real Estate" (Order of the President of the People's Republic of China No. 72 - Sep 2019) (in Chinese only)
- "Suggestion of the Entry and Administration of Foreign Investment in Real Estate Market" (Circular of the Ministry of Construction No. 171 - Jul 2006) (in Chinese only)
- "Notice on the Updates of Policies on Entry and Administration of Foreign Investment in Real Estate Market" (Circular of the Ministry of Construction and the Ministry of Housing and Urban-Rural Development No. 122 - Aug 2015) (in Chinese only)
- Notice of the General Office of the Ministry of Commerce on Issues Concerning the Implementation of "Suggestion of the Entry and Administration of Foreign Investment in Real Estate Market" (Ministry of Commerce Circular No. 192 - Aug 2006) (in Chinese only)
- Notice of the Ministry of Commerce and State Administration of Foreign Exchange on Further Strengthening and Enhancing the Approval and Monitoring of the Direct Investment from Foreign-investors on Real Estate Industry" (Circular of Ministry of Commerce No. 50 - May 2007) (in Chinese only)
- "Administrative Rules on the Development and Operation of Urban Real Estate" (2019 Revision - Mar 2019) (in Chinese only)
- The Mainland has already cancelled the qualification examination of the property management enterprises. For details, please refer to the Notice of the General Office of the Ministry of Housing and Urban-Rural Development on Cancelling the Relevant Work of the Qualification of Property Service Enterprises (Circular of the Ministry of Housing and Urban-Rural Development No. 75 [2017] - Dec 2017) (in Chinese only).
- For other regulations on foreign enterprises investing in property management enterprises, please refer to:
- "Regulations on Property Management" (2018 Revision - Mar 2018) (in Chinese only)
- Decision of the State Council on Canceling the Third Batch of Administrative Licensing Items Designated by the Central Government for Implementation by Local Governments (No. 7 [2017] of the State Council - Jan 2017) (in Chinese only)
- Decision of the State Council on Cancellation of a Batch of Administrative Licensing Items (No. 46 [2017] of the State Council - Sep 2017) (in Chinese only)
For other details, please refer to :
- "Circular on Deepening the Reform of 'Separating Operating Permits and Business Licenses' to Further Boost the Vitality of Market Entities for Development" (May 2021) (in Chinese only)
- "Letter Regarding Accomplishing the Reform of the Examination of the Quality of the Real Estate Development Enterprises" (Jun 2021) (in Chinese only)
Enquiries concerning the application procedures and requirements for the establishment of foreign-invested real estate enterprises can be directed to :
- The Ministry of Housing and Urban-Rural Development of the People's Republic of China
(Website: http://www.mohurd.gov.cn)