| The local Measures of Shanghai Municipality for Land Reserve reviewed and
adopted by the executive meeting of the municipal government will formally come
into force since August 1st, 2004 in Shanghai, Spokesperson of the Municipal
Government Jiao Yang announced at the news release conference of the municipal
government on June 23rd, 2004. Jiao emphasized that the supply of land
resources shall meet not only the reasonable needs in space in a shorter time of
period but also the long-term needs for the sustainable development in the
future. It is impossible for the market itself to form the reasonable and
effective coordination mechanism. Accordingly, the government shall, during the
resource allocation and re-allocation at the first-class market of land
resources, establish the land reserve mechanism and give full play to the
function of such mechanism in order to balance the land use needs in the near
future and far future. This local Measures is formulated subject to guidelines
of the applicable state laws and the Notice on Reinforcement of Management of
the State-owned Land Assets and in consideration of Shanghai's practical
situations. Land reserve referred herein by Shanghai means any and all
conducts by the government at the municipal/district (county) level where it,
subject to the overall land use plan, urban plan and land reserve programme,
entrusts the land reserve institution to reserve lands expropriated, retrieved,
purchased or reclaimed from marshes according to law through compensation
resettlement for land expropriation, compensation resettlement for relocation of
residents or necessary fundamental construction, and to deliver such lands
subject to the land supply programme, according to Jiao's explanation. The
non-profit land reserve institution established the municipal/district (county)
government shall, upon entrustment by the government, be responsible for land
reserve within the scope of municipal/district (county) area. The special
institution approved by the municipal government may, within the scope of the
specific area (e.g. area for 2010 Shanghai World Expo, development zones on both
sides of the Huangpu River, etc.) reserve land. According to the current
provisions, there are 6 types of lands definitely listed into the scope of
reserve. They are lands reclaimed from tidal flat and accepted upon due check,
the original state-owned lands for agricultural use that will be transformed
into operational lands used for building according to the certain plan, the
original transferred state-owned land that will be transformed into operational
lands used for building according to the certain plan, the original rural
collectively owned lands that will be assigned after expropriation according to
the certain plan, the idle state-owned lands retrieved by the land
administration authority according to law, and other state-owned lands reserved
for implementation of the urban planning by the municipal government. This
Measures will, upon formulation and promulgation, play an important role in the
following three aspects, Jiao added. Firstly, the strength of government's
regulation and control over the land market can be tuned up. Secondly, the land
supply mode can be bettered by transforming the right to use the state-owned
land from "rough land assignment" into "developed land assignment" in order to
enhance the transparency of land costs. And thirdly, the government's investment
into the land and benefit from the added value can be
balanced.
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