The Chinese government tightened the macro control over the real estate industry starting from April this year, targeting on the over-fast hiking house prices.

When more and more Chinese banks narrowed their loans to the real estate developers, the embarrassment of capital flow for a large number of Chinese real estate developers caught the attention of overseas investors.

Fang Chao, Chairman and CEO of the Beijing Guohua Co., Ltd, forecasts that China will see a boom of overseas capital flow into the real estate industry in the next year, which will accelerate the expansion of China's commercial real estate programs.

Sources from Chinese Ministry of Construction said though the housing prices are getting down in China under the macro control, China's real estate market will still grow in full swing in 2006.

In February this year, Merrill Lynch & Co., which owns 1.5 trillion U.S. dollars world wide, announced to enter China's real estate market by investing 30 million dollars on the highest building in Beijing -- the Beijing Yin Tai Center, joining hands with China's Yin Tai Holding Co., Ltd.

Though Morgan Stanley once worn overseas investors against the bubble in China's real estate market, the company itself increased its investment in China with housing projects covering major Chinese cities including Beijing, Shanghai and Guangdong.

Morgan Stanley also said it will increase its investment in China in the next year and expand its market strategy to some middle-scale Chinese cities.

Besides Merrill Lynch and Morgan Stanley, more and more overseas investors like ING from the Netherlands are also seeking accesses in China's real estate market.

Source: Xinhua