Chinese provinces are scouring their balance sheets to revitalise idle state assets, seeking alternative revenue streams to counter intense debt pressures stemming from the prolonged property downturn.
In jurisdictions such as Jilin, Sichuan and Chongqing, which are leading this fiscal drive, local authorities are doubling down on meeting aggressive regional targets to repair strained finances.
Jilin’s governor, Hu Yuting, on Tuesday said the province aimed to anchor an annual target of 100 billion yuan (US$14.75 billion) in inefficient assets to be redeployed, according to a government statement.
“We must … innovate disposal measures and intensify revitalisation efforts to continuously unlock the value of idle assets,” Hu was quoted as saying at a meeting, characterising the campaign as transforming “dormant resources” into “development capital”.
The focus of these provincial auditing campaigns includes underutilised public infrastructure and vacant administrative buildings. Under the new mandates, these properties are often disposed of or repositioned as commercial leases, affordable housing, tech hubs or tourism venues.
This form of asset-based financing has emerged as a critical fiscal lifeline for regional governments that had relied on land sales for the bulk of their income until that stream was cut off with the onset of China’s property crisis.