The Foreign Exchange Bureau Issued A Document To Block Hot Money In Real Estate.

In line with domestic Real estate Regulation and control policy, the State Administration of foreign exchange once again punched the key to block the hot money in the real estate sector.

Reporters learned from relevant channels in August 11th that the foreign exchange bureau issued the notice on the issue of checking the balance index of the financing guarantee of domestic banks in 2011 in July 27th (hereinafter referred to as the notice). The notice said that in order to promote the basic balance of international payments in China, the foreign exchange bureau decided to appropriately reduce the scale of domestic bank financing external guarantee targets in 2011 on the basis of the scale of domestic bank financing external guarantee in 2010. The notice specifically pointed out that the domestic real estate enterprises will not be allowed to apply for the external guarantee for issuing bonds abroad.

According to the notice, a moderate reduction of domestic banks in 2011 financing The scale of the scale of the external guarantee is approved by some Chinese banks, legal persons, foreign banks and foreign bank branches in 2011. The index amounts to 76 billion 376 million 220 thousand US dollars.

The so-called "financing external guarantee" refers to the guaranty provided by local banks for domestic financing by wholly domestic affiliated enterprises or equity companies registered abroad. In an interview with the economic reference daily, Zhao Qingming, a financial expert, said that for banks, financing guarantee is essentially "quasi foreign debt". When a secured party fails to repay its debts, the bank providing the guarantee shall bear the responsibility of paying debts abroad.

Data show that this year, foreign investment in China's real estate business Investment Rapid growth. Yao Jian, a spokesman for the Ministry of Commerce, said earlier that foreign investment in real estate accounts for 23% to 25% of the total domestic investment. Statistics show that at the beginning of this year, some Chinese real estate enterprises acquired overseas funds in the form of equity financing or issuing bonds. The attraction of China's real estate market to foreign investment has not been weakened due to the tightening of macro-control this year. "In the first half of this year, the growth of FDI in the real estate sector has been very rapid, with some growth rate reaching more than 60% in some months." Zhao Qingming said. He pointed out that the hot money in the real estate industry often has the nature of "gambling" and bet that China's housing prices will not fall, and it will also bet on the appreciation of the renminbi.

In fact, the real estate sector has brought a lot of pressure on foreign exchange inflows. Zhao Qingming pointed out that the publication of the notice, on the one hand, is in line with the current domestic real estate market regulation, on the other hand, it will help to curb the influx of "hot money", and it will also help to change the current imbalance of international payments.

"In 2011, the low net interest rate of arbitrage funds may be increased due to factors such as spreads, foreign exchange and overseas financing costs. Overseas financing activities of domestic enterprises may become more active. It is estimated that in 2011, China's balance of payments will continue to show a large surplus, and the operation of the balance of payments may show some volatility. The foreign exchange bureau has pointed out in the 2010 annual report of the State Administration of Foreign Exchange released in June this year. The foreign exchange bureau, which was recently held by the Bureau of State Administration of foreign exchange, put forward that the foreign exchange bureau should severely crack down on illegal funds and cross-border arbitrage funds such as "hot money" and continue to maintain a high pressure against the "hot money".

In the first half of this year, the foreign exchange bureau focused on market players such as financial institutions and large enterprises. capital Special projects such as gold settlement and short-term foreign debt have been launched to crack down on illegal activities such as underground banking and Internet speculation. A total of 1865 cases were settled in the first half of this year, involving $about 16000000000.