As for Hua Jin Real Estate, they didn't have many properties on the market; most were parcels of land they had purchased in advance. But in early 2013, Hua Country introduced the latest land development policy, which required that acquired land must be developed within a set timeframe.
Once this came to light, holding onto undeveloped land was no longer an option against policy. With a tarnished reputation, securing loans became difficult. How could they proceed with development?
Moreover, land is state-owned, and reselling it cannot be done privately. This meant the land would have to re-enter the circulation process through the municipal government. If undeveloped within a two-year period, the government had the right to reclaim the land, but they would only do so at the original auction base price. Other taxes and the land's appreciation were nobody's concern.
