BEIJING (Reuters) -China has launched a pilot scheme to boost private investment in the real estate sector, which should involve at least 30 million yuan ($4.37 million) of fundraising in its first round, its securities regulator said on Monday.
Investors in the scheme, predominantly institutional, should offer no less than 10 million yuan each to participate, the China Securities Regulatory Commission (CSRC) said.
The scheme will invest in residential and commercial housing, as well as infrastructure projects, the regulator said.
China is also encouraging participation by foreign investors through an inbound investment programme called the Qualified Foreign Limited Partnership (QFLP), the CSRC said.
The scheme will give more scope for funds to participate in the delivery of new homes, and in mergers and acquisitions of real estate assets, said Yan Yuejin, an analyst at the Shanghai-based E-house China Research and Development Institute.
“It will also assist some property developers to dispose of non-performing assets by offering capital support,” Yan said.
($1 = 6.8580 Chinese yuan renminbi)
(Reporting by Ella Cao, Liangping Gao and Ryan Woo; Editing by John Stonestreet and Jan Harvey)
