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Xinyi Wu

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.


As of February, Jilin had revitalised 345 properties belonging to provincial-level administrative departments, totalling 335,900 square metres (3.61 million square feet) and valued at 883 million yuan, according to the National Government Offices Administration.
Similarly, Chongqing’s state-owned enterprises have revitalised more than 180 billion yuan worth of existing assets and recovered more than 70 billion yuan in funds. The southwestern metropolis in February announced a target to repurpose more than 100 billion yuan worth of state assets during the nation’s 15th five-year planning period, which covers 2026 to 2030.
Meanwhile, Sichuan province’s Nanchong city recently used an idle campus site to house a vocational college – a move that saved 120 million yuan compared with building a new facility, Xinhua reported last week.
This pursuit of revitalisation is bearing fruit, according to a May report by S&P Global. Its analysts estimated that revenue from state-owned assets accounted for nearly 8 per cent of total local fiscal revenue by the end of last year, nearly double the 2020 level. Meanwhile, land revenue made up around 14 per cent, down by half from 2020.
“This divergence marks a turn towards state-owned assets as a core pillar of local fiscal sustainability,” the report said. “Their importance could continue to grow in the coming years.”
S&P added, however, that long-term sustainability depends on how well local governments execute their plans. It warned that these revitalisation efforts could also increase debt if resulting cash flows fall short of expectations, potentially heightening credit risks rather than yielding solid investment returns.


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Localities battling debt, such as Jilin and Chongqing, pivot to ‘asset revitalisation’ as land revenue remains weak, but analysts flag new risks


Localities battling debt, such as Jilin and Chongqing, pivot to ‘asset revitalisation’ as land revenue remains weak, but analysts flag new risks.


Property hunters: China regions mine ledgers for dormant riches in ‘idle’ assets

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Localities battling debt, such as Jilin and Chongqing, pivot to ‘asset revitalisation’ as land revenue remains weak, but analysts flag new risks

Localities battling debt, such as Jilin and Chongqing, pivot to ‘asset revitalisation’ as land revenue remains weak, but analysts flag new risks