Draft places new curb on developers

BEIJING - A proposed regulation would make property developers in China subject to higher standards and impose stiffer penalties on them if they fall short.

The Ministry of Housing and Urban-Rural Development issued on Wednesday a revised draft of a regulation stipulating what qualifications property developers must meet to operate legally. If approved, the regulation will require real estate companies that are considered to be grade A, the highest grade, to have at least 200 million yuan ($31.3 million) in registered capital.

"These changes in the draft come in response to developments in the property industry," said Gu Yunchang, vice-president of the China Real Estate Association. "Considering their remarkable profits and how big these developers are, the amendment is being released at a good time."