China Land-Use Rights Sales Revenue Falls 28.6% in Jan-Aug

The divergence matters: land sales, the traditional financing engine for local governments, are contracting sharply while central government fund revenue grows, deepening the fiscal squeeze on municipalities already managing debt and slower spending. This affects local infrastructure pipelines and the off-budget vehicles tied to them — the kind of exposure increasingly tokenized in RWA products. Whether the central-local revenue gap keeps widening, and how localities replace land revenue, is the open question.