Notice 1542 of MOFCOM on Foreign Investment in PRC Properties
Client/Legal Alert
January 2011
The recent announcement of Notice 1542 by the PRC Ministry of Commerce (MOFCOM) has confirmed rumours that the Chinese government, in response to the recent PRC interest rate hikes and the unveiling of another round of quantitative easing in the U.S., will tighten control of foreign capital inflow into the PRC real estate market.
This Alert provides our preliminary observations on the implications of Notice 1542 based on our recent discussions with various PRC officials and industry contacts.