Think Tank Proposes Reforms to End Dependence on Land Sales

(Beijing) – A research report has called for reforms to wean local governments off their dependence on land sales and proposed municipal bonds as a solution to fund-raising needs.

The report was published recently by China Finance 40 Forum, an academic think tank comprised of 40 Chinese financial elites around age 40.

It recommends three methods to reform land supplies. One is replacing the auction system with providing land for free or at low cost. Another is for the central government to collect all land sales revenue, or the government should exit from the land market altogether.