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Land financialisation and the financing of urban development in China

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  • Wu, Fulong

Abstract

There is a growing body of literature on China’s land reform, land system and land-centred urbanisation. While the contribution of land proceeds to Chinese local public finance and infrastructure investment has been widely acknowledged, few studies examine land through the perspective of financialisation, namely how land development uses financial instruments to generate development finance. The process of land-driven financialisation in China has not been well understood. This paper examines the land mortgage, which has accelerated since 2008, and subsequent waves of financialisation through local government financial vehicles (LGFVs) and Chengtou Bonds (urban construction and investment bonds). We highlight that the adoption of a fiscal stimulus package triggered land financialisation, which started as a development strategy for crisis management in China.

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  • Wu, Fulong, 2022. "Land financialisation and the financing of urban development in China," Land Use Policy, Elsevier, vol. 112(C).
    • Handle: RePEc:eee:lauspo:v:112:y:2022:i:c:s0264837719306313
    DOI: 10.1016/j.landusepol.2019.104412
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    3. Yunpeng Zhang, 2022. "TEMPORAL POLITICS AND INJUSTICE IN MEGA URBANIZATION: Lessons from Yangzhou, China," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 46(4), pages 558-575, July.
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    5. Yiru Wang & Honggang Lu & Yuge Chen & Peiwen Yang & Xiangbo Cheng & Fangting Xie, 2023. "The Impact of Farmland Management Rights Mortgage Loan on the Agri-Food Industrial Agglomeration: Case of Hubei Province," Land, MDPI, vol. 12(7), pages 1-17, July.
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    7. Jia Li & Rachel Tochen & Yaning Dong & Zhuoran Ren, 2022. "Debt-Driven Property Boom, Land-Based Financing and Trends of Housing Financialization: Evidence from China," Land, MDPI, vol. 11(11), pages 1-23, November.
    8. Junnan Xia & Mengyao Hong & Wei Wei, 2023. "Changes and Driving Forces of Urban–Agricultural–Ecological Space in the Yangtze River Economic Belt from 2000 to 2020," Land, MDPI, vol. 12(5), pages 1-17, May.
    9. Qiong Zhou & Qian Tan & Huixiang Zeng & Yu-En Lin & Peng Zhu, 2023. "Does Soil Pollution Prevention and Control Promote Corporate Sustainable Development? A Quasi-Natural Experiment of “10-Point Soil Plan” in China," Sustainability, MDPI, vol. 15(5), pages 1-20, March.
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