Local government financing vehicles in Jiangsu province bought more local land than property developers in 2013 in an attempt to prop up property prices, The Financial Times reported, citing research collated by Deutsche Bank. The data, covering four provinces, signal that already cash-strapped local governments are switching money from one pocket to another rather than booking real sales in a self-destructive bid to preserve the value of local land, the sale of which accounts for much of their budgets, particularly in smaller cities.
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