China government land sales revenue downturn deepens in June

CHINA’S government land sales revenue fell at a faster pace in June, data showed on Wednesday (Jul 19), as cash-strapped developers remained cautious about buying land, adding to other recent data showing rapidly tapering momentum across the broader economy.

Revenue from land sales last month fell 24.26 per cent year on year, bigger than a 13 per cent drop the previous month, according to Reuters calculations based on finance ministry data.

For the period of January to June, land sales revenue tumbled 20.9 per cent from a year earlier, highlighting the stress on China’s economy on multiple fronts including weak demand at home and abroad, debt woes in the property market, and high youth unemployment.

China’s property sector, which accounts for about a quarter of the economy, remains firmly in a downtrend, with property sales and investment recording double-digit falls. New home prices for June have also stalled after meagre gains a month earlier.

All eyes are on an expected Politburo meeting later this month, as markets hope for more policy support to shore up a stuttering economy as a post-Covid bounce fades quickly. REUTERS