Soho China scraps Shanghai building sale due to capital controls

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

controls.

"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

investment.

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)