Core Viewpoint - The State Administration of Foreign Exchange has announced that foreign individuals can now more easily convert funds for purchasing properties in China, removing previous restrictions on using foreign capital for non-residential properties [1][4]. Group 1: Policy Changes - The new policy allows foreign individuals to invest in non-residential properties, which is seen as a move to revitalize the real estate market and attract foreign investment [4]. - Despite the relaxed restrictions, the purchasing criteria remain stringent, requiring foreign individuals to have worked or studied in China for at least one year and limiting them to one property purchase [4]. Group 2: Market Implications - There is speculation that this policy change may lead to a rise in property prices as foreign capital enters the market [2][4]. - Historical context shows that previous restrictions were implemented to prevent foreign capital from destabilizing the market during economic downturns, particularly after the 1998 Asian financial crisis [4]. Group 3: Economic Context - The underlying issue affecting property prices is not foreign investment but rather the overall economic development and the ability of individuals to afford homes [6][12]. - Current economic indicators, such as negative Producer Price Index (PPI) growth and declining birth rates, suggest a challenging environment for real estate recovery [14][15]. Group 4: Structural Issues - The real estate market faces structural oversupply in less desirable areas while demand remains high in prime locations [20]. - The policy change is viewed as a procedural improvement rather than a significant market stimulus, indicating that the market may not have reached its lowest point yet [20].