Foreign investors are permitted to set up hospitals through wholly funding them or through mergers and acquisitions in seven regions including Fujian province.

The other places are Beijing, Tianjin, Shanghai, Jiangsu province, Guangdong province and Hainan province, according to a notice jointly issued by the National Health and Family Planning Commission and Ministry of Commerce on Aug 25.

Administrative approvals will be carried out by municipality and provincial authorities.

Foreign investors, who will need to be able to independently bear civil liabilities, should have experience in investing and managing in the medical and health industry, according to the notice.

The qualifications that will be taken into account in giving green lights to foreign-funded hospitals include whether they can introduce advanced concepts, modes and services of hospital management, whether they can provide world-class medical technologies and equipment, and whether they can complete or improve medical service capabilities, technologies, financing or equipment locally, etc.

It is noticeable that except for those from Hong Kong, Macao and Taiwan, investors from outside the mainland are forbidden from building traditional medicine hospitals in these seven places.