The Ministry of Finance requires that the income from land transfer should not be inflated in the form of land purchase by state-owned enterprises.

Since 2022, affected by the downward pressure of the real estate market, the land market has also been under pressure. Different from previous years, there are always several private enterprises in the former 10 housing enterprises. In this year's local auction market, the central enterprises, state-owned enterprises and urban investment platforms known as "Yang Guoping" have become the absolute protagonists. However, the latest policy issued by the Ministry of Finance may have an impact on the current situation that "Yang Guoping" dominates the local auction market.

10 6 13, the Ministry of Finance issued the Notice on Strengthening the Management of "Three Public Funds" and Strictly Controlling General Expenditure (FB [2022] 126, hereinafter referred to as "126"), which mentioned that it is strictly forbidden to borrow money to reserve land. Further standardize the debt control of local institutions, establish a strict debt examination and approval system, prohibit the addition of various hidden debts, and effectively prevent institutional debt risks.

Yan Yuejin, research director of the think tank center of Yiju Research Institute, told the reporter of China Times that this policy shows that although the financial pressure on land in various places is relatively high at present, it is still intolerable to take land in the name of state-owned enterprises and increase land transfer income in disguise.

Increase the income from land transfer.

According to the document number 126, in recent years, all regions and departments have strictly implemented the requirements of living in a tight life, constantly optimized the financial expenditure structure, and vigorously reduced general expenditures, and achieved remarkable results. However, there are still some regions or departments that are not strict in controlling general expenditures, and there are problems such as "three public funds" not falling but increasing, and sudden spending at the end of the year. To this end, the Ministry of Finance requires further strengthening the management of "three public funds" and strictly controlling general expenditures, which mentioned that land transfer income and fiscal revenue should not be inflated.

Yan Yuejin pointed out that the starting point of this policy is to strengthen the management of "three public funds", strictly control general expenditures, and alleviate the current contradiction between fiscal revenue and expenditure, but it also inadvertently implies the risk of increasing the income from land transfer in the name of "Yang Guoping".

Over the past year or so, the land market has cooled down. According to the data of the National Bureau of Statistics, the land acquisition area of real estate enterprises decreased by 49.7% in the first eight months. According to the statistics of Zhongyuan Real Estate Research Institute, as of June 5438+00, 15, among the top 10 housing enterprises in China, except for private enterprise Binjiang Group and state-owned enterprise Vanke, which are deeply cultivated in Hangzhou, the rest are state-owned enterprises or state-owned enterprises. A few years ago, Country Garden, Sunac, Longhu and other private enterprises were frequent visitors to TOP 10.

According to the report released by Ke Rui Real Estate Research Center in August 1, the total construction area of commercial land in 300 cities nationwide was 78.03 million square meters in June, down 4 1% from the previous month and nearly 50% from the same period last year. At the level of land acquisition by enterprises, there are still nearly 40% of housing enterprises with stagnant investment. Even if the hot plots in the core cities drive the overall land auction to pick up, private enterprises are still rare.

Li, the chief researcher of the Housing Policy Research Center of Guangdong Urban and Rural Planning Institute, explained to the reporter of China Times that from the second half of last year to now, many plots transferred by local governments have been taken away by local state-owned enterprises, especially district-level state-owned enterprises and urban investment platforms. To a large extent, this kind of land acquisition may only be to support the land market and maintain the current land price level.

City investment platform is no longer "bottom"

In fact, among the three types of enterprises in Yang Guoping, compared with 2/kloc-0 central enterprises and state-owned enterprises engaged in real estate development managed by SASAC, the potential risks of land acquisition by urban investment platforms supervised by local governments and financial departments are more concerned by public opinion.

Zhongtai Securities's research report shows that from June 205438 to September 2022, the amount of land invested by cities accounted for 1 1.77% of the national land transfer fee. Jiangxi has the highest proportion of land, accounting for 26.59%, and Jiangsu, Hunan, Sichuan and Chongqing provinces account for 15%-25%. Nationwide, Jiayuguan City, Huangshi City and other five prefecture-level cities account for more than 50% of the land invested; Suining City, Yueyang City and other 18 prefecture-level cities account for 30%-50% of the land; 30 prefecture-level cities such as Yancheng, Changzhou, Yichang, Shaoxing and Liuzhou account for 20%-30% of the land invested.

It is worth noting that most cities with relatively high land investment are third-and fourth-tier cities. "Land acquisition by urban investment enterprises is a new feature of the land market across the country this year, but it is obviously motivated to support the market." Yan Yuejin pointed out.

Guo Yi, chief analyst of Heshuo Organization, told the reporter of China Times that central enterprises and state-owned enterprises mainly engaged in real estate development will definitely have no problem in acquiring land. The main problem now is that the city investment will be at the bottom, and if it is at the bottom, there will be more risks. For example, some plots whose market value is not particularly superior, real estate developers generally do not agree with its value, and finally the market voted. However, city investment does not have excellent development, product building and marketing capabilities. In this case, the project is at risk of losing money.

The above-mentioned Zhongtai Securities research report pointed out that in the period of weak land market, city investment companies can participate in land auction, on the one hand, they can obtain land at a lower cost and gain benefits after land appreciation in the future; On the other hand, a large number of land purchases will also bring capital occupation pressure to city investment companies and increase external financing demand.

Li pointed out that the inflated land transfer income may also encourage local governments to squander land transfer income. As the revenue and expenditure of land transfer is not included in the budget, this part of revenue and expenditure of local government through "Yang Guoping" has not been strictly audited, which may cause some unnecessary expenditure and form hidden debt risk.

In addition, document 126 also requires that in 2023, the central financial allocation budget for the "three public funds" should continue to be arranged according to the principle of "only reducing without increasing", and local finance should also arrange the "three public funds" in strict accordance with this principle. It is strictly forbidden for public institutions to spend money lavishly.

In addition, local financial departments at all levels, while insisting on strictly controlling general expenditures, practicing economy and running all undertakings diligently, should organize financial revenues according to laws and regulations, continue to rectify illegal charges, resolutely prevent excessive taxes, put an end to arbitrary charges, fines and apportionment, and not increase the burden on market players. Resolutely implement the policies of tax reduction, tax rebate and fee reduction determined by the CPC Central Committee and the State Council, ensure that all tax reductions and refunds should be made, and crack down on all kinds of tax evasion, tax evasion and insurance fraud according to law.