Investors from mainland China who made down payments to buy property in the controversial Forest City development are in limbo, thanks to China's capital controls.
According to the South China Morning Post, buyers are unable to secure loans from China banks nor transfer funds overseas to make the due payments. Even payments made to a Hong Kong account are rejected, it reported.
This has prompted buyers to seek a refund on their down payments, but to no avail, the Hong Kong-based daily reported.
“Now we understand all further installments need to be paid abroad. But this is not allowed due to the foreign exchange controls from the Chinese government,” said another Forest City purchaser, Vicky Wu from Guangzhou.
“If we do so, we will be put on the government’s black list," she was quoted as saying.
The company's sales centres in mainland China cities were also closed "for renovation" earlier this month, but Forest City developer Country Garden representative denied it was related to Beijing capital controls, SCMP said.
Country Garden is China's third largest developer...