Laws of the Shanghai Province

(Promulgated on June 9, 2004 by Decree No.25 of Shanghai Municipal People' s Government)

Article 1 (Purpose and Basis)

For the purposes of strengthening the regulation and control of the government over the land market, implementing the urban planning in an orderly way and deepening the reform of land-use system, these Procedures are formulated according to the provisions of the "Law of the People' s Republic of China on Land Administration" , the "Law of the People' s Republic of China on the Administration of Urban Real Estate" , and the "Notice of the State Council about Strengthening the Administration of State-owned Land Assets" , and in the light of this Municipality' s actual circumstances.

Article 2 (Scope of Application)

These Procedures apply to the land reserve within this Municipality' s administrative area.

Article 3 (Definition)

Land reserve mentioned in these Procedures refers to the act of the municipal, district/ county government entrusting a land reserve agency first to store according to the overall planning of land utilization, urban planning and land reserve plan, through the conduct of compensation resettlement for land requisition, or compensation resettlement for housing demolition and relocation, or the conduct of necessary infrastructure construction, the land requisitioned, retrieved, purchased, or reclaimed according to law, and thereafter to deliver the supply of such land according to the land supply plan.

Article 4 (Administrative Department)

The Municipal Leading Group of Land Administration is responsible for the examination and approval of this Municipality' s land reserve plan and for coordination for solving major problems in land reserve.

The Municipal Housing, Land and Resources Administration (hereinafter referred to as MHLRA) is responsible for the organization and drawing up of this Municipality' s land reserve plan, and for the supervision and administration of the implementation thereof; the district/county land administrative department is responsible for the routine supervision and administration of the implementation of land reserve plan in its administrative area.

The municipal and district/county administrative departments of investment, planning, land and construction shall, according to the provisions of these Procedures, perform their duties relating to the examination and approval of land reserve items.

Article 5 (Reserve Agency)

The Municipal Land Reserve Center is the land reserve agency established by the Municipal People' s Government, exercising land reserve in the limits of this Municipality, taking charge of the initial development of the reserved land plot, and undertaking the early-stage preparation work for the reserved land plot supplied according to plan.

Each district/county government shall establish a land reserve agency that conducts land reserve in the limits of its own area.

Upon the approval of the Municipal People' s Government, a specialized department may conduct land reserve in the limits of a special area.

Article 6 (Scope of Reserve)

The following land shall be covered in the scope of land reserve:

(1) Land reclaimed from mudflat and having passed acceptance test;

(2) Farm land originally owned by the State and planned to be turned to operational construction-use land;

(3) Land originally allocated by the State and planned to be adjusted as operational construction-use land;

(4) Land originally owned by the rural collective and planned to be requisitioned for granting according to law;

(5) Idle State-owned land retrieved by the land administrative department according to law; and

(6) Other State-owned land that the Municipal People' s Government needs to reserve for carrying out urban planning.

Article 7 (Work Division for Reserve)

The Municipal Land Reserve Center shall take charge of reserving the land set out in Article 6, Items (1), (2) and (6) of these Procedures; the land set out in other Items shall be reserved jointly by the Municipal Land Reserve Center and the district/county land reserve agency where the land is located.

The specialized agency approved by the Municipal People' s Government shall conduct land reserve in the limits of an area stipulated in the related approval document.

Article 8 (Reserve Plan)

This Municipality' s land reserve plan shall be in coordination with the national economic and social development plan and be linked up with the land- use annual plan and the land-supply plan for next year and the year after next.

MHLRA shall, jointly with the Municipal Development and Reform Commission and other relevant departments, organize the drawing up of the land reserve plan for next year in the fourth quarter of each year, and shall, upon examination and approval by the Municipal Leading Group of Land Administration, resolve and transmit the plan to lower levels.

Article 9 (Official Registration, Planning and Land-use Formalities of Reserved Land Plot)

A land reserve agency shall, in the scope of land reserve plan, determine the land plots to be reserved, and may go through the formalities for the official registration of initial development of the reserved land with the competent department of investment.

Upon the approval of the official registration of initial development of the reserved land, the land reserve agency may apply to the administrative departments of planning and land for the construction-use land planning permit and construction-use land approval document. Among the documents, where the reserved land plot is related to the use transformation of farm land or to the requisition of land owned by the rural collective, the land administrative department shall issue the construction-use land approval document after completion of the formalities for the use transformation of farm land or land requisition according to legal procedures.

The location, metes and bounds, area and other matters of a reserved land plot shall be clearly stated in the construction-use land planning permit and construction-use land approval document.

Article 10 (Compensation Resettlement of Reserved Land)

Where land reserve involves housing demolition and relocation, or requisition of rural collectively owned land, the relevant formalities for examination and approval of housing demolition and relocation permission and of the scheme for land requisition compensation resettlement and other related formalities shall be completed according to relevant provisions of the State and this Municipality, and the compensation resettlement shall be conducted according to the standard, mode and procedure as provided.

Where the land reserve agency makes reserve by purchasing the State- owned land originally allocated to an enterprise or pubic institution, the agency shall, according to this Municipality' s benchmark land price and in line with the land market price, determine the compensation price and enter into a reserve-by-purchase agreement through consultation with the unit.

Article 11 (Infrastructure Construction of Reserved Land Plot)

Where a reserved land plot has the approved controlled drawing-up-unit planning or controlled detailed planning, the land reserve agency may, after completion of the demolition of buildings, structures and other attachments on the land plot, and upon approval of the investment, planning and construction administrative departments, conduct infrastructure construction according to the requirements of planning.

Where there has been the approved controlled drawing-up-unit planning or controlled detailed planning before approval of the official registration of initial development of a reserved land plot, the investment, planning administrative departments shall examine and approve the infrastructure construction of the reserve land plot at the same time when approving the official registration of initial development and the construction-use planning permit.

Article 12 (Ownership Certificate of Reserved Land Plot)

The land reserve agency, after making land through mudflat reclamation and passing the acceptance test, or entering into a reserve-by-purchase agreement of State-owned land-use rights with a relevant enterprise or institution, or after obtaining the construction-use land approval document of a reserve land plot and demolishing buildings, structures and other attachments on the land plot, may apply to the MHLRA for land registration and take out the real estate title deed of the land reserve.

When the supply of reserved land is delivered, MHLRA shall retrieve the real estate title deed of the land reserve.

Article 13 (Temporary Utilization of Reserved Land Plot)

Upon approval of the planning administrative department, the land reserve agency may make temporary use of reserved land during the period of land reserve.

The temporary use of reserved land plot shall not impair the city appearance and environment, and no permanent building, structure or other attachment shall be erected.

The municipal or district /county land reserve agency shall not concurrently deal in other operational business in addition to the temporary utilization of reserved land.

Article 14 (Statistics on Reserve Information)

The MHLRA shall institute a system for statistics on land reserve information.

The land reserve agency shall every quarter report to the MHLRA the relevant information about the area, amount, location, purchase compensation price, infrastructure construction, temporary utilization, and other matters of the reserved land.

Article 15 (Supply of Reserved Land)

The land reserve agency shall, according to the requirements of land supply plan, do a good job of early-stage preparation for supply delivery of reserved land.

The granting of reserved land shall be arranged and conducted by the municipal or district/county land administrative department jointly with the investment, planning and other administrative departments and the land reserve agency, according to this Municipality' s provisions concerning the granting of land-use rights through bidding and auction and the annual plan for land utilization.

Article 16 (Management of Funds)

Of the money gained from the granting of reserved land, the part that belongs under the granting fee of land-use rights shall be paid by the grantee to the land administrative department, and the part that belongs under the expenditure for initial development of the land shall be paid by the grantee to the land reserve agency and be placed in special funds for land reserve after deduction of cost expenditure and administrative fee of land reserve.

The Municipal Finance Bureau shall, jointly with MHLRA, formulate separately the procedures on the establishment, use and management of the special funds for land reserve.

Article 17 (Supervisory Inspections)

The municipal and district/county land administrative departments shall make periodic inspections of the implementation of this Municipality' s land reserve plan.

The finance and audit departments shall make regular check and audit on cost expenditure of land reserve and financial position of the land reserve agency, and submit the audit results to the Municipal Leading Group of Land Administration.

Article 18 (Handling of Wrongful Acts)

Any staff member of the land reserve agency who commits embezzlement, bribery, or appropriation of public funds, or who takes advantage of his or her power for personal gain, or other person' s benefit shall be prosecuted for his/her criminal liability if the wrongful act constitutes a crime, or shall be given disciplinary sanctions if the wrongful act does not constitute a crime.

Article 19 (Interpretation in Specific Application)

MHLRA is responsible for the interpretation of these Procedures in their specific application.

Article 20 (Effective Date)

These Procedures shall become effective on August 1, 2004.