China May Scrap Limit on Municipal Land Sales to Boost Fiscal Revenue, Sources Say

China may lift the annual cap on centralized land auctions in a bid to boost local government coffers that have dwindled after Beijing sought to cool an overheated property market, sources with knowledge of the issue told Caixin.

In a notice about land parcel sales sent to local governments in December, the Ministry of National Resources did not mention the maximum limit on the number of auctions that a city can hold each year — which in 2021 was set at three for 22 major cities including Beijing, Shanghai and Shenzhen — a sign that the limitation could be eased, the sources said. That compared to over a dozen land auctions previously.