No reason for concern over China’s capital controls on outbound foreign investments, CCCI and CIPA note

No decline or problems as regards real estate sales have been identified following Chinas decision to impose new capital controls on outbound foreign investment, Cyprus Chamber of Commerce and Industry general secretary, Marios Tsiakkis told CNA.

Invited to comment on China’s decision, Tsiakkis said that it is not a measure that affects only Cyprus but the whole world.

He said this restriction was imposed earlier this year by China and it is not something new and that the Chamber was aware of this from the start and had a meeting with Chinese embassy officials on the issue.

What is significant, he added, is that we have not indicated yet any decline or problems in the real estate field

Tsiakis pointed out that there is still great interest from Chinese organisations to invest in Cyprus and a number of investments are being examined in the field of tourism and creating investment funds that will be used in Cyprus.

The creation of an investment fund or an investment in tourism, he added, may be associated with real estate purchases.

The Cyprus Investment Promotion Agency (CIPA) General Secretary, Natasa Pilidis, told CNA that so far there is no information that will indicate a decline in real estate sales as well as reasons for concern, noting surely it is something that needs to be investigated so it will not have a negative effect in the future.

Investments from Cyprus concern small amounts, around two million, mainly for naturalisation purposes, she said, adding however that it is something that needs to be examined and resolved.

Source: Cyprus News Agency