Shanghai modifies negative list for foreign investors in FTZ

SHANGHAI – Authorities have released a revised version of the negative list to offer more leeway for foreign investment in Shanghai’s pilot free trade zone. The revised list lifted restrictions on foreign investors from finance companies, trust companies, and currency brokers- and offers more freedom for foreign participation in the real-estate sector by allowing firms to invest in construction and the operation of large-scale wholesale markets for agricultural products.

 Wholly foreign-funded projects are now allowed in land development, and foreign investors in medical institutions are no longer subject to as strict minimum investment amounts and maximum operation periods. In the entertainment industry, foreign investment is no longer restricted to lottery and gambling areas, and internet bars are now open to investment.
A registration system has been introduced in the zone for foreign investment in areas that are not singled out in the list - to simplify procedures and reduce processing time. Introduced last year after the launch of the pilot free trade zone, the list specifies all business areas in which restrictions will remain for foreign enterprises in the Zone.