China govt land sales revenue falls at slower pace in November
CHINA’S government land sales revenue fell at a slower pace in November than in the previous month, official data showed on Friday (Dec 15), but the property downturn remains a major challenge for the recovery of the world’s second-largest economy.
Revenue from land sales fell 1.5 per cent in November from a year earlier, compared with a 25.4 per cent slump the prior month, according to Reuters calculations based on data from the finance ministry.
Revenue fell 17.9 per cent in January to November year on year to 4.2 trillion yuan (S$785.7 billion).
Land sales, a major source of local governments’ revenue, have fallen sharply since last year. Property developers have been grappling with mounting debts and stalled housing projects since Beijing started curbing excessive leverage in 2020.
China’s new home prices fell for the fifth straight month last month, data from the National Bureau of Statistics (NBS) showed on Friday, while property investment fell 9.4 per cent January to November year on year, after a 9.3 per cent drop in January to October.
In early December, Moody’s cut the outlook of China’s sovereign rating to negative from stable, citing surging local debt and property market woes.
Authorities have been rolling out measures to fend off potential financial risks from a property slump and 92 trillion yuan in local government debt, as tight financing conditions would constrain local governments’ ability to fund infrastructure projects and spur growth. REUTERS
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