China has removed a long-standing restriction that barred foreign companies from buying residential properties for non-self-use, in a bid to attract more foreign investment and stabilise its real estate sector, reports Caixin.

The State Administration of Foreign Exchange (SAFE) announced nine new measures on Monday September 15 to simplify cross-border investment and financing rules. The reforms are part of Beijing's "steady foreign investment" strategy, launched in 2023 to counter slowing inflows.

Among the changes is a revision to the "negative list" governing capital account income usage. The ban on using such funds for non-self-use residential property has been lifted. The list now mainly restricts loans to unrelated firms and investments in securities, except for lower-risk products.

Deputy SAFE head Li Bin said the original restrictions were introduced during a period of market overheating to limit speculative capital flows. He noted that current conditions require updated policies to support stable housing sector growth.