China's Land Sales Drop 29.5% as Fiscal Revenue Rises

China’s government land sales revenue fell 29.5% year-on-year to 792.2 billion yuan in the first two months of 2022, data from the finance ministry showed on Friday, compared with a 2.16% increase in December.

The country’s vast property sector has slumped for months as Beijing’s campaign to reduce high debt levels triggered a liquidity crisis at some major property developers, resulting in bond defaults and projects being shelved or left unfinished.

Fiscal revenue in the first two months of 2022 rose 10.5% from a year earlier, the ministry said.

Fiscal expenditure in January-February rose 7.0% from a year earlier, the ministry said in a statement on its website.

China will cut income tax for some small firms until the end of 2024, it added.

Small firms will be subject to income tax of 20%, effective from the start of 2022, the ministry said in a statement on its website.

Reuters, with additional editing by George Russell

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.