Research On The Supervision Of Foreign Investments In China's Real Estate Market

Compared with other countries, China has been attracting the most foreign direct investments in recent years. The real estate market has become the second largest business for overseas investments.More "hot money" for speculation flew into China with FDI. Meanwhile, the souring real estate market has been providing the convenience for "hot money" to speculate in China's market in a short term. Consequently, confronted with this severe situation, the departments related to the supervision of foreign investments should give priority to how to manage overseas investments, how to direct these investments and make them conducive to China's real estate market.Through logical analysis, this thesis puts forward the view that it is necessary for China's government to attach importance to the inflow of foreign investments to real estate market. Specifically , the departments concerned need to recognize that foreign investments would not be the mainstream of China's real estate market in the long run. Moreover, owing to their comparatively advanced financing and operation module, they are playing a positive role in domestic competition, which will promote the innovation in domestic company's thinking style and after-sale service. They will carry forward the competition ideology in real estate industry. The competition getting more and more complicated will facilitate a more regulated market and great enhancement in manufacturing and service of all kinds of real estate.In the meantime, the government should be alert of the 'hot money' which flew in and ran away for speculation as quickly as possible. The overseas 'hot money' has had fairly negative impact on some regional market. However, in spite of the disturbance of some sensational conspiracies, the departments concerned should be aware of the capital's aspiration for appreciation deep-rooted in its origin. Therefore, how to maximize the merits of foreign investments for the most needed section in China's real estate market has been a test for the supervision departments.This thesis consists of six parts. The main body involves the macro-situation of the foreign investments in China's real estate market, the reason why the overseas investments are interested in China's real estate market, the foreign investments' impacts to China's real estate market, other countries' experiences on how to supervise and manage the foreign investments in real estate market, and some advices for strengthen the present supervision and management.In part one, the author introduces the current situation of China's real estate market and summary of the past research, which laid the basis for the author's research.In part two, the author analyzes the reason why the overseas investments are interested in China's real estate market, outlining their investment channel, investment fields and regional distributing.In part three, the author analyzes the foreign investments' impacts to China's real estate market in details from positive and negative perspectives. While stress the negative influences, the author put forward the viewpoint that the overseas investments still have positive influences on China's real estate market.In part four, the author introduces other countries' experiences on how to supervise and manage the foreign investments in real estate market. The author introduces the experiences of German, United States, France, Singapore and compares other countries' supervision and management measures, then sum up some experiences from certain aspects.In part five, the author introduces the existing laws and regulations in the field of supervision of foreign investment, especially the intention and focus of the laws and regulations concerned, then points out existing problems in supervision.In part six, the author puts forward some institutional advices on how to improve the supervision on the foreign investments in real estate market combined with some results mentioned above. As a creation, the author sets forth that the overseas investments are bound to be directed into positive circle, which means the departments related could introduce them into the improvement of the development of housing industrialization in China, and make most of financial derivatives to promote the construction of housing for families of medium and low income.