China is tightening regulation on foreign investment in the real estate sector to crack down on speculation, according to a statement from the Ministry of Commerce.

The ministry urged local authorities to increase checks and supervision on property investment that involved foreign investors and strengthen risk controls on the sector.

Foreign-funded developers are not allowed to make profits through buying and reselling real estate projects, which will be strictly monitored by the ministry along with the Ministry of Land and Resources and the State Administration of Foreign Exchange, the statement said.

(Xinhua News Agency December 25, 2010)