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Booming land sales flatter local government finances

In aggregate, local government debt ratios have been fairly stable during the past few years and there has been a clear improvement in the composition of the debt. But the picture looks less rosy once we consider cyclical factors such as the temporary boost to fiscal revenue from the recent boom in land sales. In this China Watch we take a close look at how local governments in China have been funding their spending and whether this is sustainable.

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