Chinese officials earned almost US$5 trillion (30 trillion yuan) reselling land, says economist

Chinese officials earned 30 trillion yuan reselling land, says economist

Monday, 25 March, 2013, 2:49pm


Agence France-Presse in Beijing

Chinese authorities have earned almost US$5 trillion (HK$38.8 trillion) in profit by selling land obtained from farmers to developers over the years, a top economist said according to state media.

As the country undergoes a huge urbanisation process rural land confiscations have led to numerous protests, worrying the ruling Communist Party, which sees corruption and social unrest as threats to its power.

By law, officials may provide compensation worth up to 30 times the value of the land’s output, but in practice they have skimped on payments or foregone them altogether – then sold the land to developers at much higher rates.

Wu Jinglian, an economist at the Development Research Centre of the State Council, China’s cabinet, said: “Some (government) agencies have earned around 30 trillion yuan, by conservative estimates, from land price spreads in the urbanisation campaign over the past decades.”

Wu, a former adviser to Zhu Rongji, premier in 1998-2003, made the remarks at an economic forum at the weekend, the official Xinhua news agency said.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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