ABSTRACT

Investing in real estate is traditionally assumed as one of the most secure forms of investment capable of producing an income. The existence of China’s tremendous real estate market prophesies great potentiality to be exploited. This article is intended to be a basic review and analysis of China’s legal regulations and practice governing foreign investors seeking to participate in Chinese real estate investment. Although the relevant subject matter is vast and complex, the focus is on the aspects upon which China lays particular emphasis. In this context, the coverage of game rules falls into two sections: primary market and secondary market. This article discusses the primary market’s major function as the place where land use rights are initially acquired. The article also elaborates upon the activities in the secondary market where land use rights may be further traded and subsequent development of the land may take place.