The General Office of the Ministry of Natural Resources ("MNR") has recently issued the Circular on Matters Concerning Further Regulating the Pledge of Land Reserves for Financing Purposes and Accelerating the Resolution of Land Approved but Not Granted (the "Circular"), which has taken effect immediately from the date of issuance and will remain valid for five years.
The Circular calls for efforts to: 1. strictly prohibit the use of government land reserves to illegally seek financing; 2. strictly prohibit the use of land reserves as assets investment in State-owned enterprises; 3. properly handle existing land reserve loans, help with the lawful removal of pledge and promote reasonable land supplies; and 4. improve the reporting of information about land reserves. Among others, the Circular states that, all regions shall strictly follow relevant provisions set out in the Circular on Matters Concerning the Land Reserves and Fund Management, and resolutely put an end to the illegal pledge of government land reserves to seek financing. Meanwhile, work on land reserves must be undertaken by land reserve agencies placed on the relevant list, and any other agencies are banned from being engaged in such work. In addition, it is not allowed to directly make a decision, in the form of meeting minutes or official letters of the government, to grant the land recovered, acquired or expropriated by the government to platform companies with governmental background or to other enterprises or public institutions, without going through statutory land supply procedures.