Chinese developers have stepped up their efforts to sell land to save local governments

Government developers are rushing to save China’s small-scale governments by investing in real estate transactions that were previously controlled by business groups.

In the last three months government developers have purchased three-quarters of the residential properties sold in 22 major cities and their prices, according to a Financial Times survey on human history. In the past they have only bought about 45 percent of their market share, which is a major source of revenue for local governments.

One year trip from Beijing to reducing opportunities the total assets, estimated to account for one-third of the world’s total wealth, has led to the collapse of Evergrande and other Chinese business corporations. This has also reduced the demand for buyers in real estate, which has seriously undermined government funding.

“Local governments are relying on government agencies, which have access to low-cost loans, to keep real estate prices down,” said Chai Duo, a professor at Beijing’s Central University of Finance and Economics and government policy adviser. “Debtors with a strong focus on reducing their capacity.”

State-owned advertisers also include the most profitable state-owned economic vehicles, which has traditionally focused on building projects rather than on real estate. According to a human profile reviewed by FT, LGFVs have acquired one-third of the value-added real estate since September, compared with 10 percent earlier in the year.

“Our purchase of land is a political decision, not a commercial one,” said Fenghua Urban Investment Corp, who asked for anonymity. Fenghua and LGFV east of Ningbo, paid Rmb682m ($ 107m) in two installments earlier this month.

Government advertisers, however, have not been able to fill all the rest due to the backlog of business corporate builders. As of September almost one-third of all betting has failed, with no candidates wanting to pay the minimum price. The previous interest rate was only 6.5 percent.

In Beijing, known as one of China’s hottest markets, 26 of the 43 places sold in the most recent market in October failed to attract even one person.

“We are in the early stages of a systematic collapse in marketing as a tightening policy continues,” said the head of research at the leading consultancy center in the capital, who asked not to be identified.

Although the Chinese government has also reduced some points to reduce pressure on China’s economic sector, it has not shown any signs of slowing down the “red line”. add boundaries which pushed Evergrande and a few other developers to the end.

China’s central bank has recently released a report showing a strong annual increase in lending rates in October – out of its regular quarterly lending system.

“Unusual disclosure of the monthly rate is also an attempt to reduce market sentiment,” Wei He and Xiaoxi Zhang at Gavekal Dragonomics, a research company based in Beijing, wrote a recent report. “Banks are allowed or encouraged to resume lending.”

“There is no way the real estate market can collapse without a reduction in data,” added Ai Zhenqiang, a researcher at the Mingyuan Real Estate Research Institute in Shenzhen.

Proponents of her case have been working to make the actual transcript of this statement available online.

On November 8, Niu Wei, chief executive of Shenzhen developer Excellence Group, told the conference that his group had “no power” to sell after spending Rmb21bn on construction space this year, according to FT.

The meeting was attended by a number of Shenzhen producers, banks, reputable companies, investors and a tank affiliated with the State Council, the Chinese prime minister.

“It makes sense to stand closer than to spend money betting on an uncertain future,” added a Beijing housing official, who did not want to be named.

Additional reports of Xinning Liu in Beijing and Tom Mitchell in Singapore