Several Chinese local governments have slashed forecast of land sales revenue in 2019 as the cooling real estate market is turning developers more cautious about buying lands.
Of the 24 provincial governments that have announced draft fiscal budget for 2019, more than half expect the revenue into government-managed funds to drop this year. In particular, provincial governments of Hubei, Jiangxi, Zhejiang and Sichuan expect the revenue to drop by 33.6 per cent, 31.5 per cent, 20.9 per cent and 38.5 per cent respectively.
Land sales revenue is the primary source of revenue to government-managed funds. In 2018, land sales accounted for 91 per cent of the funds, shows official data.
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