Amid a prolonged economic transition, China’s growth engine is shedding its old gears. The heyday of real estate expansion is over. Urban home prices have lost their relentless upwards march and local governments, once flush with land revenues, are confronting fiscal strain.
It is tempting to declare this the end of the land finance era, a long-anticipated turning point that will force Beijing to adopt a more sustainable fiscal model.
Yet such a conclusion would be premature. For all the…
