The new catalogue expands the scope of foreign investment restrictions in the real estate industry and relaxes the scale of restrictions in the financial industry. Why does the new catalogue further expand the scope of foreign investment restrictions in the real estate industry? But reduce the restrictions on entering the financial industry? To this end, Hexun.com invited relevant experts to interpret the new catalogue. Distinguished guests: Bai Ming, a researcher at the International Investment Research Center of China Academy of Social Sciences, and Cao Jianhai, a researcher at the Research Institute of the Ministry of Commerce. The external environment has changed and the catalogue of foreign-invested industries must be revised. Wang Xun: What are the similarities and differences in the background and timing of the two revisions in 2004 and 2007? Cao Jianhai: In 2004, China was pursuing high-speed economic growth, which was the peak of extensive management in China during the Tenth Five-Year Plan period. So it was possible to expand foreign investment at that time, and foreign investment, including real estate, was very welcome at that time. We continued to introduce it, which was relatively different from the current external environment. In addition, in 2004, we didn't know enough about foreign mergers and acquisitions of state-owned enterprises, and we were positive and open to this aspect, which led to a large number of successful mergers and acquisitions of domestic private equity funds. At that time, we didn't know enough about many problems. This time, in fact, it shows that the financial sector is more open and the market is also open, which is indeed of great benefit to the financial industry to improve competition intensity, improve service quality and reduce fees. He Xun. Com: The New Catalogue clearly states that China will continue to restrict foreign investment in the construction and operation of high-end hotels, villas, high-end office buildings and international convention and exhibition centers. Foreign investment in land development must be joint venture and cooperation with domestic enterprises, and the restrictions in these fields have not been relaxed. What are the basic considerations? Cao Jianhai: The construction of high-end hotels, villas, high-end office buildings and international convention and exhibition centers is actually restricted in China, which is determined by the overall real estate policy of the country. Villa, high-grade office building and international convention and exhibition center occupy a lot of land, and these constructions are easy to encourage investment overheating, so these large-scale constructions should be prevented. Restricting foreign investment is tantamount to implementing a unified real estate policy in China. And high-grade office buildings are easy to become the target of speculation. For example, Morgan Stanley often buys large commercial office buildings when it enters China. If they invest in development, it will definitely be restricted, and there may be considerations in this regard. Bai Ming: High-end hotels, villas and high-end office buildings are hot spots in themselves. Now that the real estate price is so high, it is urgent to meet the housing needs of ordinary people, especially low-priced houses. Regardless of these, some places vigorously develop high-end hotels, villas and high-end office buildings, which not only puts pressure on building materials and other materials, but also may not be beneficial. Therefore, it is necessary to restrict foreign investment in these areas. Restricting foreign investment in real estate intermediaries is conducive to stabilizing housing prices. News Network News: The new catalogue has increased restrictions on foreign investment in real estate secondary market transactions and real estate intermediaries or brokerage companies. Why did you add this new project? What is the connection with the current real estate market? Cao Jianhai: At present, real estate agents are one of the main factors that lead to such high housing prices. For example, real estate development companies now have to use intermediary companies to start selling houses, which requires tea fees and handling fees, and can often avoid taxes through intermediary companies. At present, intermediary companies participate in raising housing prices on a large scale, and even participate in the sales of first-hand houses, especially the real estate sales of some state-owned enterprises. State-owned enterprises are worried that the price increase will cause criticism from the government and the media, so they usually introduce intermediary departments into the sales of first-hand houses. Therefore, intermediaries actually play a huge role in influencing housing prices. If foreign capital enters intermediary companies and participates in speculation through the secondary market, it may lead to a large amount of wealth flowing abroad, and once foreign capital controls the housing market or rental market, it will have a great impact on people's livelihood. The people's livelihood housing problem in a country and a place is largely controlled by foreign-funded enterprises, which is very dangerous. Therefore, a new entry will be added to the new directory. He Xun. COM: The 2004 edition of the directory shows that futures companies are prohibited from foreign investment. The new catalogue stipulates that foreign investors can invest in futures companies, but China must hold shares. What is this basic consideration? What is the connection with the upcoming launch of stock index futures? Cao Jianhai: A few years ago, we closed many futures companies. In 2004, China was very cautious about futures trading. However, after 2005, the international oil price fluctuated greatly, and the prices of bulk commodities such as iron ore and non-ferrous metals continued to rise. China's development in this area is relatively backward, and international speculative funds and hedge funds have funds specially purchased for China, so China has suffered a lot in this area. Now the country has realized the importance of the futures issue and must "make up the accounts". Relatively speaking, foreign capital is relatively mature in futures trading experience and other aspects, so relaxing this restriction is actually to help domestic futures companies avoid risks and improve their management level by introducing foreign capital to participate in futures trading. Of course, this is definitely related to the introduction of stock index futures, which laid the foundation for the introduction of stock index futures. Bai Ming: The opening of China's financial market is the general trend, but it does not mean that it will be opened overnight, but gradually. These years have gradually matured, and now both the opening of B shares and the through train of Hong Kong stocks are proceeding in an orderly manner. China's opening to the outside world has been escalating. In the past, it was to expand exports to participate in the international division of labor and to open up from goods and capital, but financial capital is a relatively advanced form of capital. Open futures company is a typical form of financial capital opening. The new catalogue is beneficial to people's livelihood and the maintenance of national security and information network: the new catalogue no longer allows foreign investors to invest in the exploration and exploitation of some important non-renewable mineral resources, and restricts or prohibits the entry of foreign-funded projects with high material consumption, high energy consumption and high pollution. In addition, soybean and rapeseed edible oil processing and bio-liquid fuel production are required to be controlled by the Chinese side, while corn deep processing is listed in the restricted category. How to treat these various "forbidden zones" of foreign investment? Cao Jianhai: In the past, we made the biggest mistake in the field of mineral exploration and mining, that is, we allowed different economic forms of capital to participate. This has caused great damage to the mining of this mine, mainly caused by foreign businessmen and private enterprises. We should no longer encourage foreign investment in this field, and a moderate joint venture in exploration is unnecessary. In fact, the investment and exploration of independent foreign investors do not conform to the basic inherent laws of mining and exploration, because such mines are the assets of the whole people. If foreign capital controls the country's resources, it will actually lead to a large-scale loss of wealth in this country. Like Venezuela, a large number of oil resources were originally controlled by foreign capital, and the national welfare has been greatly improved after nationalization. Based on this consideration, it will be very troublesome to allow foreign capital to come in now and nationalize it later, so this consideration is more appropriate. Bai Ming: Resources are land resources given to China by God and enjoyed by the people of China. However, the resource price reform has not yet been fully put in place. Without it, we can't define the specific income distribution. For example, how much you dig a ton of coal is given to you by God, by nature, created by your labor, and formed by how many capital elements, so it is impossible to accurately judge. Under such inaccurate circumstances, foreign capital will certainly get the wealth endowed by nature to China in addition to capital return. Why did China give you all this wealth? In the past, it was ok to give China some foreign capital because of the lack of foreign capital, but now the resources are getting less and less, and the prices of resources are getting higher and higher. So why did China give up foreign capital? In addition, there are signs of excess foreign investment in China. At this time, it is the right time to introduce restrictions. He Xun. Com: The processing of soybean and rapeseed edible oil and the production of bio-liquid fuel are required to be controlled by the Chinese side, but the deep processing of corn is listed in the restricted category. What should we do? Cao Jianhai: These things are different. For example, the processing of soybeans and edible oil is a very important part of people's livelihood. This piece should be controlled by domestic enterprises. The production of bio-liquid fuel and corn processing are related to food security. If foreign capital is introduced on a large scale, once it is out of control, it will lead to an increase in food prices in a country, which is related to people's livelihood. Therefore, it is necessary to restrict foreign investment, which is also an improvement over the past. Bai Ming: This is mainly industry-oriented, because this thing is really a bit hot and it is easy to cause redundant construction. For example, corn deep processing has not produced any decent raw materials for a long time. Like hotels, it often leads to excessive competition, which is already fierce in China. He Xun. Com: What is the significance of the publication of the New Catalogue for macro-control, overall planning of domestic development and opening up? Cao Jianhai: The significance lies in limiting the increment of foreign investment, which is conducive to reducing contradictions such as increasing foreign direct investment, excessive surplus, increasing foreign exchange reserves and rising prices. In addition, the control of some industry resources and people's livelihood means that we pay more attention to national security, and openness is no longer an open door. This is the necessity of paying tuition fees in the past. After paying a lot of tuition fees, we learned smarter. Foreign capital "has countermeasures" against the new catalogue? He Xun. Com: What attitude will foreign investors take to the new catalogue? Will foreign capital "have countermeasures"? Cao Jianhai: It's absolutely true. For example, foreign capital can be realized by increasing the capital of the original enterprise. This policy itself is not particularly operational. Because of its greater flexibility and the introduction of foreign capital by local governments, especially in the central and western regions, local governments still attach great importance to the performance appraisal of foreign capital GDP, which may make the policy itself difficult to implement. Bai Ming: Foreign investors will definitely find a way. This directory itself is a guiding role. Any policy is a readjustment of the interest pattern, and there are always happy people and unhappy people.