Greater China Banks Daily: China’s fiscal revenue improves, but land sales still weaken; HK considers higher southbound quotas and mainland retail access to IPOs

Research evidence excerpt

Greater China Banks Daily: China’s fiscal revenue improves, but land sales still weaken; HK considers higher southbound quotas and mainland retail access to IPOs

Global Research

23 June 2026ab

Greater China Banks Daily Equities

ChinaChina’s fiscal revenue improves, but land sales

still weaken; HK considers higher southbound Banks

quotas and mainland retail access to IPOs MayAnalystYan

may.yan@ubs.com

+852-2971 7157

China’s fiscal revenue improves, but land sales still weaken Alex Ye

Analyst

Yicai, Jun 22: According to MoF data released on June 22, 2026, China’s general public S1460522090005

budget revenue has reached a record-high of Rmb10.05trn, with a 4% YoY growth. Tax alex.ye@ubs.com

revenue served as a core driver, rising by 4.4% to Rmb8.26trn; while non-tax revenue +86 755 2215 8858

grew 2.2%. The composition, however remained mixed. Domestic VAT rose 6.2%,

Catherine Yang, CFA

personal income increased 12.2%, and securities transaction stamp duty surged 88.8%, Analyst

whereas corporate income tax was broadly flat and consumption tax declined 3.1%. S1460526010003

More importantly, government-fund revenue declined 19.2%, while land-sale proceeds catherine-za.yang@ubs.com

dropped 28.7%, underscoring a prolonged real estate market weakness weighed on +86-755-2215 8860

local government finances. Helen Li, CFA

HK considers higher southbound quotas and mainland retail access to IPOs helen-za.li@ubs.com

Reuters, Jun 22: Hong Kong is in discussions with Chinese authorities to broaden cross- +852-2971 6066

border investment channels. Financial Secretary Paul Chan revealed that proposals

include lowering entry thresholds for qualified investors, raising southbound investment

quotas, expanding the pool of eligible products and allowing mainland Chinese retail