No. 341, Nov 12(2)

New Restrictions on Foreign Investors
Focus, page 6
Our focus series lays out the restrictions placed on foreigners under the newly issued Sector Investment Guide for Foreign Investors published on November 7. Foreign-invested firms are restricted from participating in secondary property market trading and real-estate agency activities. The regulations, which were introduced by the State Development and Reform Commission, also aims to discourage foreigners from investing in residential properties and high-end hotels. In the mining sector, foreigners are totally barred from exploring resources such as wolfram, molybdenum and tin.
Original article: [Chinese]

Consumers Become Developers in Wenzhou
Nation, page 9
A year ago, a group of individual house-buyers initiated a project that pooled funds together for land purchase and property construction in Wenzhou for private use. The project is now under pressure from the local authorities to adopt a business model in order to obtain project approval. The 256 members involved have been told to sign an agreement to consent to the public sale of the property units once the project is completed. If they sign, the members would effectively become shareholders and act like a collective developer rather than consumers.
Original article: [Chinese]

Law Suit to Redeem Made-in-China Reputation
Nation, page 10
Chinese toy makers whose reputations have been scarred and have suffered losses in the wake of the Mattel product recall are planning to sue the American toy giant. The businesses say that they have acted in accordance with the Mattel contract and feel that they have been unjustly implicated, as the recalled episode has created a widespread distrust in China-made products.
Original article: [Chinese]

Guangdong's Biggest Money Laundering Network Busted
Money & Investment, page 17
An underground banking network in Shenzhen that tapped internet technology had amassed a money laundering empire worth some 4.3 billion yuan within one and a half year of operation, police investigations revealed. This is the largest money laundering shop discovered so far in Guangdong province, and its tendrils reached out to bases in Shenzhen, Guangzhou, and Hong Kong. The police also recovered over 90 bank cards, 40 internet banking passwords, and 11 identity cards used in facilitating illegal transactions.
Original article: [Chinese]