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China to Overhaul Urban Commercial Real Estate, End Speculation

The Ministry of Commerce has plans to launch an overhaul of urban commercial real estate projects in July to prevent speculative activities in the non-residential housing sector.

Since China has adopted policies designed to cool off the overheated residential housing sector, the ministry said some speculators might turn to commercial real estate projects for quick money.

The overhaul, the first of its kind in China, will be jointly conducted by the ministry, the China Commercial Real Estate Union and the China Federation of Urban Commercial Outlets Construction Administrations in Guangdong, Guangxi, Fujian, Shanghai, Jiangsu and Zhejiang provinces.

Inspectors will focus on projects under construction involving a floor area of more than 10,000 square metres; investigate the vacancy rates of commercial buildings, the financial status of developers and the influence of macroeconomic policies concerning the construction and operation of commercial facilities.

They will also hold symposiums with local developers and grass-roots market management departments.

A detailed report on existing problems and possible solutions will be submitted directly to the State Council.