国发（1995）13号
（May 26，1995）
颁布日期：19950526 　实施日期：19950526 　颁布单位：国务院

China's real estate sector is a newly emerging industry， and its continued growth bears great significance in terms of expediting the urban construction and renovation and promoting economic development. The real estate sector is currently in the initial stage with rather weak macro-control over its development and construction in addition to incomplete and imperfect policies and regulations， and consequently， various questions meriting prompt solutions have surfaced in the course of ongoing development. One question is related to the relatively large scale of real estate construction. In 1993， the nation's investments accomplished in real estate development and construction soared to 113.8 billion Renminbi（RMB） yuan， representing an increase of 63.2 billion RMB yuan or a 124.9% rise on 1992， and again with a relatively high rise in 1994 to 160.8 billion RMB yuan， or up 41.3% on 1993. The second question centers on their rational structure of real estate investments. With regard to some regions and cities， the construction and development of deluxe office buildings， garden villas， holiday villages and deluxe apartment complexes have exceeded real market demand and in turn have occupied substantial funding， while inadequate funding has been allocated to residential housing construction， with supply failing to satisfy market demand. Social problems have surfaced in some cities due to the excessive demolition of housing and relocation and the failure to properly arrange for the resettlement of displaced residents.

In line with the spirit of the Conference on Central Economic Work held in November 1994， the current scale of investments in fixed property should be further controlled， rational adjustments should be made to the investment structure， the real estate industry should be promoted in a healthy and orderly manner， and deluxe real estate development projects should be strictly controlled. Therefore， the following notice is hereby issued：

1. The examination and approval of deluxe real estate development projects shall be strictly controlled. Therefore， no approval shall be granted in 1995 for the registrations and the start-ups of construction of the following types of deluxe real estate development projects， and thereafter all examinations and approvals shall be strictly controlled： （1） deluxe villa-like residential housing and holiday villages； （2） projects involving apartment complexes， office buildings with projected construction costs per unit space one time higher than ordinary local residential housing and office buildings； （3） the construction of guest houses， hotels rated at or above four star （or an equivalent） level.

In addition， new golf courses， buildings replicating ancient cities， amusement palaces and etc. shall be strictly prohibited.

2. Deluxe real estate development projects shall be examined and approved in accordance with procedures for capital construction and the limits of specified authority. The State Planning Commission shall be responsible for the examination and approval of registrations and the start-ups of construction of deluxe real estate development construction projects covering 100，000 or more square meters or with projected total investments of 200 million or more RMB yuan， for the registrations and the start-ups of the construction of real estate development projects of units under central and state departments in Beijing. The planning committees of provinces， autonomous regions， municipalities directly under the Central Government and cities listed under separate plans shall be responsible for the examination and approval of the registration and implementation of the construction of deluxe real estate development construction projects covering 20，000 or more square meters but less than 100，000 square meters， or having projected total investments of 30，000，000 RMB yuan， but less than 200 million RMB yuan， and shall submit them to the State Planning Commission for the record. The aforementioned scales and limits of constructions represent the scale and limits of development projects on single tracts of land， and no approvals shall be granted beyond the limitations of authority by subdividing tracts or subdividing over a specified period of time.

Banks shall refuse to arrange loans for projects which have not been examined and approved for registration and the start-ups of construction in accordance with relevant provisions. Projects having received approval for the start-ups of construction shall have immediate access to self-raised funds and bank loans； and if self-raised funds are withheld， banks shall not grant loans， and administration departments shall refuse to complete land-use formalities， and urban construction departments shall not issue licences for the planned use of land for construction and related construction licences.

3. Funds for deluxe real estate development projects shall be strictly administered， and investment funds included in the national budget shall not be used for such projects. All the existing bank loans for real estate shall be administered as loans for investments in fixed assets， and shall be included in the national plan for investments in fixed assets and no loans shall be granted outside the plan. It shall be strictly prohibited to grant loans for real estate development projects in the forms of circulating funds and mortgage loans， or using the call money for borrowing.

4. Administration of the use of land for real estate construction shall be strengthened by strictly implementing provisions of the “Land Administration Law of the People's Republic of China” and the “Law of the People's Republic of China on Administration of Urban Real Estate”。 The requisition， appropriation or transfer of rights to use state-owned lands by people's governments of cities and counties must be submitted for approval in accordance with application procedures and limits of authority for approval specified by the “Land Administration Law of the People's Republic of China” and by the State Council， and no examination and approval beyond limits of authority for subdivided tracts of land shall be allowed. The scale of urban construction shall be strictly controlled and the use of land shall be carried out economically. Land set aside for growing vegetables and land in protected areas of basic farmland shall not be used for developing deluxe real estate projects. With regard to land transfers， the transferee shall carry out development and construction in strict accordance with specified time limits provided in contracts， and failure to begin development within the time limit specified by law will result in non-compensated withdrawal. Administration of land prices for transferred land shall be strengthened， and land used for deluxe real estate development projects shall all be supplied by tender or by auctions.

5. Administration of the collection and use of proceeds from land transfers shall be standardized. Proceeds from land transfers are considered as special funds and shall be included in the financial budgets by financial administration departments at various levels. Such funds shall be administered in a planned manner with the receipts and expenditures separated and the principle of special funds for special use. 50% percent of the proceeds from land transfers in medium and large cities in coastal areas， and 30% of the proceeds from land transfers in other areas must be included in local finances and shall be mainly used by provinces， autonomous regions or municipalities directly under the Central Government for agricultural and key construction projects， with the remaining funds used for the construction of urban infrastructure. Such funds shall not be used for financial running expenses.

6. Administration of development and construction of real estate projects using foreign investments shall be strengthened. Foreign investments shall be actively directed to projects related to renovation of older cities and ordinary residential housing projects. Enterprises and projects related to the development and management of real estate using foreign investments shall be examined and approved in accordance with relevant state provisions and within the limits of authority for examination and approval. The Chinese party shall not raise funds for the foreign party， nor provide guarantees for loans the foreign party has outside the territory.

Deluxe real estate projects using foreign investments of and over US$ 30，000，000 shall be examined and approved by the State Planning Commission， （with limits of authority for the administration of other projects using foreign investments remaining unchanged）。 Projects related to tourist hotels shall be handled in accordance with relevant existing provisions. Deluxe real estate projects involving investments of one-hundred million U.S. dollars and over shall be reported by the State Planning Commission to the State Council for examination and approval.

7. Imported materials required for various types of real estate development and construction projects shall， without exception， be subject to import duties， and the value-added and consumption taxes in accordance with provisions outlined in the “Circular of the State Council on Questions Concerning Levying Taxes on Imported Materials Used for Real Estate Construction”。

8. Relevant planning， city construction， programming， land administration and auditing departments， and people's banks， state-owned commercial banks and other financial institutions shall perform their respective functions， and shall assume responsibility for exercising strict supervision and administration of deluxe real estate development projects. Auditing departments at various levels shall strengthen auditing supervision over deluxe real estate development projects in terms of sources of funding， procedures for examination and approval and construction conditions， and shall insist on conducting an in-depth audit prior to the start-up of construction.

9. This Circular shall take precedence over relevant provisions previously issued by the State Council and relevant departments which fail to conform with the aforementioned Circular regarding real estate development and construction.