6.Visa

7.Polocy and regulations on real estate investment

Z-type visa

1. Z-type visa is granted to foreigner with permission to work in China and to his family.

2. The certificate for invitation or employment from a Chineses employer, or the letter or telex of visa notification sent by the authorized unit is needed when applying for Z-type visa.

3. Foreigner applying for more-than-one-year residence in China should submit a health certificate issued by the medical and health department designated by the government of his own country. The health certificate will be valid for six months starting from the day of issuance.

Foreigners who can apply for visa at port

The Chinese law stipulates that foreigners could apply for visa at the authorized port for emergencies listed as below and too late to apply for visa at the Chinese embassies, consulates or offices. When applying, they need to submit the letter or telegraphs of the authorized Chinese units and passport of the country which has diplomatic relationship or official trade relation with China, it is quick and convenient to apply visa at port. The validity of this kind of visa is no more than three months.

1. At the invitation as the last moment by the Chinese side to attend the trade fair.

2. At the invitation to the bidding or the formal signing of the trade agrement.

3. To supervise the examination of the export and import or check the contract by agreement.

4. At the invitation for the installation of equipment or project rush-repair.

5. At the demand of Chinese side to settle claims.

6. At the invitation of the Chinese side to give scientific and technological advice.

7. Unexpected change or addition of members for the visitor group agreed previously by the Chinese side.

8. To see the serious patient or handle the funeral.

9. People with transit visa cannot leave the country in the same flight within 24 hours for certain reasons or need to change to other means of transportation.

10. At the invitation of other reasons but without enough time to apply for a visa in embassies and with letter of agreement to apply for a visa at ports by designated competent bodies.

The authorized ports with visa-issuing right are as follows:

Beijing, Shanghai, Tianjin, Dalian, Fuzhou, Xiamen, Xian, Guilin, Hangzhou, Kunming, Guangzhou ( at the Baiyun Airport, Shenzhen (luohu and Shekou), Zhuhai (at Gongbei),Haikou, Sanya, Qingdao, Weihai and Yantai.

Reentry visa

Where a foreigner holding the Residential Permit or the Temporary Residential Permit needs to leave China for short-term matters and reenter the country within the term of validity of the permit, he shall apply to the Division of Aliens and Exit-Entry Administration of Beijing Public Security Bureau for a visa for reentry into China before his departure. Otherwise, Chinese frontier check authorities will judge that the foreigner concerned will not reenter China after the departure, and proceed to revoke and recoup the residential permit in line with law. Where a residential permit-holding foreigner does not need to reenter China after the departure, he may go through the formalities for departure by presenting the passport or other valid certificates instead of an exit visa. Under such a circumstance, the foreigner concerned shall submit the residential permit to Chinese frontier check authorities for its revocation. Where the foreigner concerned fails to present the residential permit, Chinese frontier check authorities shall stop him from leaving China.

In applying for a reentry visa, a residential permit-holding foreigner shall go through the following formalities:

1. To submit the valid passport and valid residential documentation for verification.

2. And, to fill in a Visa Application Form for foreigners, which shall be affixed the official seal of the institution which the foreigner is working for.

The management of expropriation of collectively-owned land

For overseas investors wishing to develop construction projects on collectively-owned land, they are required to gain prior approval from investment planning authorities, foreign trade and economic cooperation authorities and urban planning management authorities. With the documentation of approval by these authorities, investor concerned may proceed to contact competent government department to go through the formalities of expropriating collectively-owned land for construction in line with law.

The management of compensated use of state-owned land

The State applies in line with law the system of compensated use of State-owned land with limited duration of use. For overseas investors investing in Beijing, they should generally use land by paying for construction in line with law.

1. For investors investing in projects of real estate or entering various types of development areas whose establishment has been approved by the State, they may acquire land-use right from the State by means of transfer through auction, invitation of tenders and signing agreements. The transfer of the land-use right refers to the act of the State to transfer the right to use State-owned land to land-users for use in the limited duration, who liable to pay the State compensations for the transfer of the land-use right. In transferring the land-use right, relevant real estate and land management authorities must sign written contracts with the land-users concerned. Within the scope of permission of relevant law provisions ans terms of contracts, land-users have the right to transfer, lease or pledge the land-use right they have acquired. In accordance with different purposes of the use of land, the maximum duration of the validity of the land-use right transfered ranges betwwen 40 years and 70 years. Generally, the rates on compensations for the transfer land-use right (land rents) payable by land-users are firstly evaluated by entrusted evaluation institutions based in Beijing which are qualified to evaluate the rates on compensations for the transfer of the land-use right. After the evaluation, the rates shall be subject to the examination and approval by relevant real estate and land management authorities ( the Beijing Real Estate and Land Management Bureau or the real estate and land management bureaus of districts and counties under the jurisdiction of Beijing Municipality)

For the exproriation of land for all projects in any one of the eight districts in the suburbs of Beijing and for a project requiring an area of more than 10 mu in any one of 10 districts and counties in the outer suburbs of the city, the investor concerned should apply to the Beijing Real Estate and Land Management Bureau for the exproriation of land and contact it to go through the formalities of the transfer of the land-use right. For the expropriation of land for a project requiring an area of no more than 10 mu in any one of the 10 districts and counties in the outer suburbs of Beijing, the investor concerned should apply to the local real estate and land management authorities at the district or county level for the expropriation of land and contact them to go through the formalities of the transfer of the land use right.

For overseas investors wishing to invest in real estate projects in Beijing, they are generally required to incorporate joint ventrues with Beijing-based investors which have the right to develop and operate real estate projects. Any applications of joint ventures between overseas and Beijing-based investors should be submitteed to the beijing Municipal Planning Commission, the Beijing Municipal Foreign Economic and Trade Commission and other competent authorities for examination and approval. For overseas investors whshing to invest in real estate projects in beijing in the form of sole proprietorship, they are generally required to submit relevant applications to the Ministry of Foreign Trade and Economic Corporation for examination and approval after the application are reviewed by the Beijing Municipal Government.

2. In addition to the acquisition of the land use right in the forms defined above, overseas investors may also acquire the land-use right by paying annually the land-use fee payable by overseas-funded enterprises in line with law. However, the land-use right acquired in this way may only be used by the investors concerned, but may not be transfered, leased or pledged, or diverted to other purposes. The duration of the land -use under such an arrangement is generally the duration of joint operation of a relevant foreign-funded enterprise, but it may not exceed the longest duration of the validity of the right to use land transfered for similar purp[oses in the maximum. The land-use fee refers to the compensation for the use of land payable by overseas-funded enterprises to local governments during the period of their operation. The land-use fee does not include the costs of land expropriation, population resettlement or the construction of infrastructure facilities, etc. The areas on the land-use fee vary greatly in accordance with the locations of land and the purposes of using land, ranging from 1 Chinese yuan/per square meter annually to 150 Chinese yuan/per square meter annually. Generally, the way of using land defined above is only applicable to the use of existing land of Chinese cooperation partners for the establishment of joint-venture production enterprises, plantations and breeding grounds and for other purposes approved by the government.

Where the Chinese cooperation in a proposed joint venture will be a Central Government department, a People's Liberation Army unit based in Beijing, an enterprise owned by the Beijing Municipal Government or an economic organization of other types, and where an overseas investor is planning to establish a wholly overseas-funded venture in Beijing, the party or parties concerned should apply to the Beijing Real Estate and Land Management Bureau for the expropriation of land and contact it to go through the formalities of acquiring the lans-use right. Where an enterprise owned by a district or county of Beijing, an economic organization of other types is planning to establish a joint venture with an overseas investor, the party or parties concerned should apply to the local real estate and land management authorities at the district or county level and contact them to go through the formalities of acquiring lans-use right. Where Chinese entities of the two major categories defined above are planning to jointly establish a joint venture with an overseas investor, the parties concerned should choose a competent real estate and land management authority for going through the formalities of application and acquiring land-use right in accordance with the nature of the Chinese cooperation patner in the proposed joint venture offering the largest amount of investment.

The management of pre-sale and sale of commercial housing

For an overseas investor wishing to presell or sell real estate which it is developing in Beijing, it must apply to the Beijing Real Estate and Land Management Bureau for a " License for Pre-Sale of Commercial Housing for External Marketing" or a " License for Sale of Commercial Housing for External Marketing." After the application approved and a license is issued, the relevant overseas investor may pre-sell, sell or rent tis real estate to Chinese and foreign enterprises, economic organizations of other types of individuals. However, for an overseas investor planning to pre-sell or sell real estate to domestic individuals (excluding those from regions of Taiwan, Hong Kong and Macao), it must gain prior approval from the Beijing Municipal Government. The developers may independently set the price of the real estate marketable and the rate on rents. The trade acts of pre-selling, selling and renting real estate may be conducted both in China and abroad. Where the real estate defined above is pre-sold or sold abroad, relevant Chinese law shall apply.

Where an overseas-funded enterprise is pre-selling or selling real estate which is under development in Beijing, the seller and the buyer should sign a " Contract for Pre-Sale of Commercial Housing for External Marketing in Beijing City" or "Contract for Deal of Commercial Housing for External Marketing" printed by the Beijing Real Estate and Land Management Bureau on a unified basis. Within a period of 30 days counted from the date of signing a pre-sale contract, thr parties concerned should contact the Beijing Real Estate and Land Management Bureau to go through the formalities of the pre-sale and pre-purchase of the real estate concerned. Within a period of 30 days counted from the date of delivering the real estate for use, the seller and the buyer, taking with them the relevant pre-sale or sale contract and other relevant documents, should go to the Beijing Real Estate and Land Management Bureau to go through the formalities of changing the ownership of the real estate concerned.

For the transfer of commercial housing pre-purchased during the validity of the relevant " Contract for Pre-Sale of Commercial Housing for External Marketing," the transferer and the transferee should endorse the pre-sale contract, and, after the endorsement, should take with them relevant documents and go to the Beijing Real Estate and Land Management Bureau to go through the formalities of registering the transfer of the pre-sale contract in a timely manner.

In the pre-sale and sale of real estate, the parties concerned are liable to pay the contractual tax, transaction charges,the stamp tax and other relevant charges.

The management of the registration of the ownership of real estate property rights:

The State applies the system to register the land-use right and the ownership of real estate, and to issue relevant certificates to parties concerned. Where an overseas-funded enterprise had acquired the land-use right through transfer or other legal means, where it has legally built houses on the land, it has expropriated in the line with law, and where it has purchased real estate, the party or parties concerned should apply to the Beijing Real Estate and Land Management Bureau or a relevant district-or county-level real estate and land management authority for registering the ownership of the real estate concerned, and contact it to obtain the certificate of the right to use State-owned land and the certificate of ownership of the real estate concerned.

Where the ownership of real estate of an overseas-funded enterprise or an overseas investor has been transfered or has changed, the party or parties concerned should apply to the Beijing Real Estate and Land Management Bureau for registering the transfer or change of ownership in timely manner. After the transfer or change is affirmed and the application is approved, the original certificate of ownership shall be replaced or modified.

The management of the mortgage of real estate

Overseas investors may use its legal real estate for finacing or providing guarantee of creditor's rights for other parties in the form of mortgaging the real estate.

The mortgage of real estate refers to the act of the mortgagor to use its legal real estate for providing the mortgagee with the guarantee to pay debts in the form of possession that has not been transfered. When the debtor has failed to pay debts, the creditor has the right to become the first party to be compensated with 50% of the price of mortgage or the income from the auction or sale of the object mortgaged in line with law. However, as the land-use right, which determines the right to mortgage real estate, is acquired in the form of allocation, after relevant real estate is auctioned, the mortgagee will become the first party to be compensated only with the balance of income from the auction after it is used to pay the price of the compensations for transferring the land-use right.

For the mortgage of a building on State-owned land expropriated in line with law, the right to use the price of State-owned land which the building occupies will be mortgaged at the same time. For the mortgage of the right to use State-owned land acquired in the form of transfer, the building(s) on the piece of State-owned land should also be mortgaged at the same time. However, building newly set up after the mortgage shall be excluded. The right to use land of township or village-run enterprises including workshops, the right to use the piece of land occupied by the relevant buildings shall be mortgaged at the same time.

In mortgaging real estate, the party concerned should take with it the certificate of the land-use right and the certificate of ownership of the real estate and go to competent authorities to go through the formalities required. And, the mortgagor and the mortgagee should sign a mortgage contract, and should proceed to contact the Beijing Real Estate and Lanf Management Bureau to register the object of mortgage. A mortgage contract shall take effect as of the date of registering the mortgage.

The management of the lease of real estate

In an effort to protect the legal rights and interests of both the lessor and the lessee, the Beijing Real Estate and Land Management Bureau hsa been gradually strengthening the management of the lease of real estate. For an overseas investor whishing to operate its real estate in the form of lease, it should contact the Beijing Real Estate and Land Management Bureau to obtain a license for leasing real estate in line with law. After singing a lease contract with the lessee, the lessor shouls contact the Beijing Real Estate and Land Management Bureau to register the lease in a timely manner. For an overseas investor wishing to lease (take) real estate, it is required to gain prior approval from the municipal public security ahtuorites before singing a lease contract. Besides, it is also required to contact the Beijing Real Estate and Land Management Bureau to register the lease for record in a timely manner.

For overseas investors whishing to invest in Beijing, they may acquire the right to use State-owned land in urban township areas of Beijing by paying compensations and through the establishment joint ventures, bidding, tender-offering or singing agreements. The duration of the land-use right is 40 years to 70 years in the maximum, in accordance with the purposes of the use of land.

Overseas-funded enterprises may sell or lease the real estate they have developed to other enterprises, economic organizations of other types or individuals within and outside of China.

Overseas investors may mortgage the buildings under their ownership and the land-use right to banks or other financial institutions outside China.