Jul 05, 2022 08:29 PM

China’s Plunging Land Sales Threaten Local Government Coffers

China’s local governments sold about half as much land in the first half of this year as they did in the same period of 2021, as domestic developers continue to struggle with cash flow problems in the wake of Covid-19 lockdowns that have cut into demand for housing, industry data show.

The plunging sales of land-use rights, which are the largest source of non-tax revenue for local governments, pose a growing threat to their budgets, which have come under substantial pressure this year as officials have ramped up spending to keep Covid in check.

You've accessed an article available only to subscribers
Share this article
Open WeChat and scan the QR code
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription
Caixin China Biz Roundup: New ‘Langya’ Virus Detected in China