Many wonder if the government's action will work to slow down the pace of construction in its rapidly growing cities.
"China's decision to double land-use fees for new construction projects will have only a marginal impact on developers, but they will face more pressure as future measures come into effect, Deutsche Bank said.
The Ministry of Finance, together with the People's Bank of China and Ministry of Land, last night announced that the government would raise the land use fee for new projects by 100 pct, effective from January 1 next year.
The key objective of the rule is to protect agricultural land, prevent investment overheating, and contain excessive profit margins of real estate developers, Deutsche said in a client note."
FULL STORY: China's land-use fee hike to have only marginal impact on developers
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