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China issued on Monday new proposals to regulate foreign investment in its real estate sector.

The proposals include an increase in the ratio of registered capital in property developers' overall investment and restrictions on residential property purchases by foreign institutions and individuals.

They are part of the government's efforts to improve the efficiency of using foreign investment.

The proposals have been jointly issued by the Ministry of Construction, the Ministry of Commerce, the National Development and Reform Commission, the People's Bank of China, the State Administration of Industry and Commerce and the State Administration of Foreign Exchange.

The proposals also require foreign-invested real estate enterprises to publish details about projects, shares, loans and any foreign exchange sales.

According to the proposal, foreign institutions establishing branches or representative offices in China and individuals working or studying in China for over one year can purchase commercial houses for their own use.

The proposals also order local governments to monitor foreign investment entering China's real estate market.

(Xinhua News Agency July 24, 2006)