Reconsidering Chung Shan

Yesterday, the National Development and Reform Commission and the Ministry of Commerce released new guidelines on foreign investment in real estate in China which become effective December 1. In this article, Shanghai Daily suggests that overseas capital is being restricted to reduce the heat in the China housing and general real estate market, and to upgrade industrial structure. The salient points:

• Foreign investment in golf courses (no more Arnold Palmer planned Chung Shan's), gaming services, and ammunition manufacturing is banned.
• Capital flow into the development of large-scale land lots and the construction and operation of high-end hotels, villas, office towers and exhibition malls will be restricted.
• Life insurance companies, securities companies, and funds-management businesses specializing in stocks, will have the ratio of foreign funds capped at 50%, 33% and 49%, respectively.
  
• Foreign capital for prospecting rare and non-renewable mineral resources is banned.
• Polluters and high users of energy and resources will be embargoed(?).

Good idea? Bad idea? Will it be effective?