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Foreign investment has become the scapegoat for the high prices : The price keeps on rising influence social stability has become a major issue with the image, but also to the macroeconomic operation planted hidden; On the other hand, foreign investment poured into China's real estate industry. According to statistics, in 2005 China's offshore institutions buy buildings 3.4 billion U.S. dollars, foreign Real Mission of the Wenzhou Real Alternative and beyond overwhelming. Many people link this two phenomena that Chinatown is the result of foreign high prices as a direct result of Zhimakaihua rising. Between the central and local long-term interest not straighten out, and the system is not perfect enough, causing real estate prices continue to rise, in uncontrolled conditions. RMB appreciation of the lasting presence of foreign capital is expected to first target the assets, and in many of the assets, real estate is the preferred option. Therefore, foreign investment Real estate prices and the yuan appreciation because the double expectations. Although foreign investment Real estate prices have helped objectively on the role, but it will not reverse causality. In this view, prices keep rising mainly domestic issues, should find internal, and should not pass the buck to foreign investment, foreign capital is only used to.