Can a foreign investor invest in Chinese real estate leasing business?

Not long time ago, I got an inquiry regarding legality of a foreign invested company contemplating leasing part of its business premises/factory in Shanghai.

The company is a foreign invested enterprise engaged in manufacturing business. As a result of China’s economic contraction, part of its factory is now left idle. They want to lease the part of…

An irrevocable power of attorney? What does it mean under Chinese laws?

A power of attorney, POA, is used widely in any jurisdiction in many circumstances where one individual entrust another individual to speak and act in his name or on his behalf and protect their best interests.

As I represent foreign clients in most cases, clients often raise the issue of revocability of power of attorney they are going to grant to me. Recently,…

property price in Wenzhou dropped 40%

News on ifeng.com had it that property prices in Wenzhou have seen a 40% drop off its peak prices in the year of 2010.

Wenzhou is a special place in China’s economic landscape boasting its big population of enterpreneurs in the city. The local affluence and fortunes have found easy expression in the local property prices that may easily dwarf or belittle…

Sell China property, but not just about sale

I am representing two clients in selling their properties in Shanghai, China. It seemed that people are losing confidence in China property market, a sign that the growth of Chinese economy in a whole is slowing down to a lackluster rate.

Foreigners may be more worried about their holding of properties in China as they are often alarmed by western media about …

real estate mortgage/hypothecation/guarantee in China

Recently, a foreign trading company importing a production line from a manufacturer in Shanghai inquired about what should be considered when accepting a contract performance guarantee in the form of real property hypothecation provided by the Chinese exporter which offered to collateralize its buildings and underlying land to guarantee the production…

Another meaningful victory against Shanghai local government in respect of inheritance of garden villa on allocated land

A few months ago, I was approached by one of the offspring of Sun Yat Sen, the founder of the Republic of China, for his trouble in inheriting a garden villa located in Xuhui district in Shanghai China. The trouble is that he and other heirs to the estate garden villa are required by local land administration to pay a big sum of land grant fee for the land underlying …

Move Money and Property Out of China

Moving money, assets and property out of China is quite a sensitive matter in China, though such moves take place every day across the Chinese borders. It is a known secret that a bulk of the money so moved is illegal proceeds generated by corrupt officials and their cronies. While we see a great deal of illegal transfer across the border, for ordinary people, moving…

A frequent question about inheriting real estate in China

When it comes to inheriting real estate in China, things often get more complicated than inheritance of personal property such as bank deposits.

For example, in the current inheritance matter I am handling on behalf of an American client, there are four heirs  that are entitled to take a share of the estate property. The parties are in dispute regarding what…

Shanghai property market revived?

I don’t have any supportative data for property market revival in Shanghai.

The day before yesterday, I went to Shanghai Pudong real estate transaction centre, and what I saw really surprised me.  There are so many people buzzing in the hall, and you have to admit that people are coming back into the market again. When the volume of deals increases, the …

Nothing is impossible in China, you also think so?

It has been in place for some years from 2006 when China central government imposed restrictions on foreign individual or legal entities in buying properties in China, an move taken to rein in the then out of control price hike. This restriction is further reinforced in 2010 to the effect that each foreigner can only “buy” one piece of residential…

make a will disposing of properties located in China

The number of  foreigners with some kinds of properties or assets in China has been sky-rocketing every year for the reasons that (1) more and more foreigners come to China for luck of fortune, and equally (2)  more and more Chinese citizens emmigrate and convert into foreigners. Naturally, foreign-related legal affairs have been increasing exponentially,…

bona fide principle in Chinese laws

In a leasing/occupancy dispute where I represent the owners (a couple whose names are both registered on the title deed of the property) of an apartment in Shanghai, trying to take back the apartment which had been leased out to a foreigner “tanant” by the owners’ friend who was once entrusted with the keys of the apartment.

In response to …

two disressed apartments in Shanghai on sale at good prices

Though no one will disagree that this is not a time for purchasing real properties in China, esp in big cities like Shanghai, we cannot deny that there are still people believing that real estate is still something worth investing in a long term in China, in particular properties that are discounted heavily due to some non-market reasons.

As a real estate lawyer,…

landlord failed to fix problems, can I withhold rent?

Expats living in China very often get frustrated with their Chinese landlords. A tipical situation is where the landlord fail to fix problems of the apartment/house, for example, air-conditioning breaking down, no hot water etc..

I got a help call this morning from a foreigner living in Shanghai, accusing his landlord of failing to fix some problems in the …

sell your real property in China before it is too late

vA piece of news run on Ifeng.com caught my attention but with no surprise.

According to the news, a dozen of American individual real estate investors are selling their hotel units bought six years ago. It made news because of its sensitivity in a time people are waiting to see where the Chinese property market is heading, or put it clearly how much the prices can…

Make a gift of real estate in China

I did a post, “how does a foreigner inherit real properties in China?”, some while ago in which I suggest people thinking of making a gift of their properties to their beloved ones as an alternative of passing the properties to their children, spouses or other family members after death. Hence, there have been inquiry emails from foreigners regarding how…

property prices moving down in first-tiered cities in China

The media have never been so negative about the property market in any previous round of government curbs.

Believe it or not, news about property developers offering discounts and other benefits inducing home buyers has flooded major web portals in China, citing that developers cannot hold the market any more as central government shows no sign of relaxing…

an effective way to bypass real estate purchase restriction on foreigners

As we all know, foreigners are restricted to purchase real estate property in China. Now if your spouse is a local Chinese person (take Shanghai as example, you have a Shanghai husband or wife), now you can buy as many property as you wish so long as you have sufficient cash.

A couple of days ago, China National Administration of Taxation issued a new circular saying…

property prices facing downward pressure in first-tiered cities

China property market is really facing a turning point now after so many years of government curbs round after round. Seeing that central government shows no sign of relenting restrictive policies, both real estate developpers and investors have been undergoing a painful psych change over the past of this year.

Not long before, there run an article on web…

Save your tax when you sell your real property in China

This morning, on behalf of my client from Singapore who sells her apartment, I went to local tax bureau to pay the related taxes.

It was finally confirmed that my client will not need to pay the personal income tax as prescribed in a regulation in which it is required seller shall pay the personal income tax equal to 20% of the difference of sale price and the original…