Two points to make. Short-term, land sales are a key leading indicator for property development and iron ore. Currently cratering. Long-term, you will know that China’s iron ore era is over for real when a land tax is fully enacted. Mizuho with the note:
The government used to rely on administrative measures (such as home purchase restrictions and price caps) to regulate the market, causing problems like mini-cycles, price distortion, reliance on land finance, and low fertility rates.
The new framework is expected to comprise five aspects-land, finance, taxation, investments and legislation.