Published on : 08/09/2024

On September 8, 1987, Shenzhen transferred the first piece of state-owned land for compensatory use through consultation and bidding.

According to the "Land Use Rights Contract of Shenzhen Special Economic Zone" (深圳經濟特區土地使用權合同書), a piece of land of about 5,321 square metres was transferred to China National Aero-Technology Import & Export Corporation Shenzhen Industry and Trade Center for 1.06 million CNY.

After the establishment of the People's Republic of China, the land belongs to the state and has always been distributed by the state for free.

By the end of the 1970s, China started the Reform and Opening-up (改革開放), with Shenzhen being one of the first newly established special economic zones.

As early as 1981, Shenzhen took the lead in charging fees for the use of some lands. However, Shenzhen, with all industries waiting to flourish, also faced a shortage of funds.

Shenzhen later turned its eyes to Hong Kong, established a research group in October 1986, and conducted a field study in Hong Kong in the following month.

In December of the same year, the Shenzhen Municipal Government, drawing on Hong Kong's experience, drafted the "Land Management System Reform Plan of the Shenzhen Special Economic Zone (draft)", proposing the separation of state-owned land ownership and usage rights, with the use rights of state-owned land entering the market as a special commodity.

Users could acquire land use rights in equal competition forms, such as agreement, tender, auction, etc. Once the land usage rights were acquired, the user could have usage and income rights within the contract period, which could be transferred, leased, or mortgaged.

Since then, Shenzhen has opened the prelude to major reforms in China's land use system, laying the foundation for the reform of China's land use system, and directly promoting the amendment of the relevant clauses of the Constitution of the People's Republic of China.