HONG KONG, March 24 (Reuters) - Commercial property
developer Soho China said it scrapped a deal to sell
its Shanghai commercial building because it would not be able to
move the proceeds offshore due to China's tightened capital
"Because of the country's capital controls, money cannot go
out ... Where can I invest the (renminbi) proceeds? I have
nowhere to invest," founder and Chairman Pan Shiyi told an
earnings conference on Thursday.
"Although the rental yield is a bit low, under the asset
crush holding a property inside China is better than holding
renminbi inside China."
China's tighter grip on funds moving out of the country
after the yuan plummeted to more than eight-year lows has hurt
some Chinese companies' overseas expansion plans and created
extra challenges for firms or deals reliant on mainland
Dalian Wanda Group's offer to buy Dick Clark Productions Inc
for $1 billion also collapsed last month over problems getting
currency out of China.
(Reporting by Clare Jim; Editing by Stephen Coates)