Soho China scraps Shanghai building sale due to capital controls

SOHO China

24/03/2017 06:51

HONG KONG, March 24 (Reuters) - Commercial property 
developer Soho China  0410.HK  said it scrapped a deal to sell 
its Shanghai commercial building because it would not be able to 
move the proceeds offshore due to China's tightened capital 
controls.  
    "Because of the country's capital controls, money cannot go 
out ... Where can I invest the (renminbi) proceeds? I have 
nowhere to invest," founder and Chairman Pan Shiyi told an 
earnings conference on Thursday. 
    "Although the rental yield is a bit low, under the asset 
crush holding a property inside China is better than holding 
renminbi inside China." 
    China's tighter grip on funds moving out of the country 
after the yuan plummeted to more than eight-year lows has hurt 
some Chinese companies' overseas expansion plans and created 
extra challenges for firms or deals reliant on mainland 
investment. 
    Dalian Wanda Group's offer to buy Dick Clark Productions Inc 
for $1 billion also collapsed last month over problems getting 
currency out of China.  urn:newsml:reuters.com:*:nL1N1G50WG 
 
 (Reporting by Clare Jim; Editing by Stephen Coates) 
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters 
Messaging: clare.jim.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA CURRENCY/SOHO CHINA