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

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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