Local government proceeds from land sales grew 5.2 per cent in the first half of 2020, compared to a 1 per cent contraction over the same period last year. Photo: Reuters Local government proceeds from land sales grew 5.2 per cent in the first half of 2020, compared to a 1 per cent contraction over the same period last year. Photo: Reuters
Local government proceeds from land sales grew 5.2 per cent in the first half of 2020, compared to a 1 per cent contraction over the same period last year. Photo: Reuters

China’s ‘three red lines’ strike delicate balance between curbing real estate debt and local government finances

  • Beijing has recently tightened borrowing criteria for property developers in a bid to reduce debt levels in the real estate sector
  • But the regulations threaten land sale revenues that are essential to the financial health of struggling local governments

Topic |   China economy
Local government proceeds from land sales grew 5.2 per cent in the first half of 2020, compared to a 1 per cent contraction over the same period last year. Photo: Reuters Local government proceeds from land sales grew 5.2 per cent in the first half of 2020, compared to a 1 per cent contraction over the same period last year. Photo: Reuters
Local government proceeds from land sales grew 5.2 per cent in the first half of 2020, compared to a 1 per cent contraction over the same period last year. Photo: Reuters
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