ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
China debt crunch

China taps public debt to buy unused land from developers

New response to property slump risks further financial woes for local governments

China's central government is encouraging local governments to acquire property and build affordable housing on it. (Photo by Mizuho Miyazaki)

BEIJING -- China plans to use regional bonds to fund the purchase of idle land from cash-strapped property developers for the construction of affordable housing.

Special-purpose bonds were first rolled out in 2015 as a way for local governments to fund infrastructure projects, including economic development zones and roads. A portion of the proceeds is now expected to be used to acquire undeveloped lots and unfinished buildings from real estate developers.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more