China foreign investment

CHINA is due to relax restrictions on the rate of return from foreign investment on infrastructure projects, says Hopewell Holdings director Gordon Wu.

Speaking at the conference Mr Wu said the 12 per cent return on foreign investment might be relaxed to allow 15 to 16 per cent return, he said.

The imposition of limits on the rate of return had triggered complaints from potential investors and advisers who said infrastructure money could be lost.

Unrealistic return estimates and increasing controls on regional partners had been put down to a battle between Beijing and provinces on development, and control of infrastructure.

Mr Wu said yesterday certain issues were being resolved at the highest level and restrictions would be lifted.