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 :

Real Estate Development

• According to the "Notice on Adjusting the Policies on Market Access and Administration of Foreign Investment in the 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 enterprises shall abide by the "Provisional Regulations for the Proportion of Registered Capital to Total Amount of Investment of Chinese-foreign Equity Joint Ventures" (Circular of the State Administration for Industry and Commerce No. 38 - Jan 1987).
  1. Where the total amount of investment of the Chinese-foreign equity joint venture is less than USD 3 million (including USD 3 million), the registered capital shall account for at least seven tenth of the total amount of investment.
  2. Where the total amount of investment of the Chinese-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. If the total amount of investment is less than USD 4.2 million, the registered capital shall not be less than USD 2.1 million.
  3. Where the total amount of investment of the Chinese-foreign equity joint venture is between USD 10 million and USD 30 million (including USD 30 million), the registered capital shall account for at least two fifth of the total amount of investment. If the total amount of investment is less than USD 12.5 million, the registered capital shall not be less than USD 5 million.
  4. Where the total amount of investment of the Chinese-foreign equity joint venture is above 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.
• According to the "Provisions on the Administration of the Qualifications of Real Estate Development Enterprise" (2022 Revision - Mar 2022) (in Chinese only), the qualification of real estate development enterprises is divided into Grade 1 and Grade 2 based on the conditions of the enterprises. Enterprises shall engage in the real estate development business within the prescribed scope of their respective grades and shall not undertake obligations beyond their respective grades.
• For details, please refer to:
  • "Urban Real Estate Administration Law of the People's Republic of China" (2019 Revision - Aug 2019) (in Chinese only)
  • "Administrative Rules on the Development and Operation of Urban Real Estate" (2020 Revision - Nov 2020) (in Chinese only)
  • "Opinions on Regulating the Market Access and Administration of Foreign Investment in the Real Estate Market" (Circular of the Ministry of Construction No. 171 - Jul 2006) (in Chinese only)
  • "Notice on Adjusting the Policies on Market Access and Administration of Foreign Investment in the 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 Relevant Issues Concerning the Implementation of the 'Opinions on Regulating the Market Access and Administration of Foreign Investment in the Real Estate Market'" (Ministry of Commerce Circular No. 192 - Aug 2006) (in Chinese only)
  • "Notice of the Ministry of Commerce and the State Administration of Foreign Exchange on Further Strengthening and Regulating the Approval and Supervision of Foreign Direct Investment in the Real Estate Industry" (Circular of Ministry of Commerce No. 50 - Jun 2007) (in Chinese only)
  • "Decision of the Ministry of Commerce on Amending Some Rules and Regulatory Documents" (Order of the Ministry of Commerce 2015 No. 2 - Oct 2015) (in Chinese only)

Property Management

• According 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), the Mainland has already cancelled the qualification of property service enterprises.
• For details, please refer to:
  • "Regulations on Property Management" (2018 Revision - Mar 2018) (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)

Enquiries concerning the application procedures and requirements for the provision of real estate services in the Mainland 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)