The Communist party will “construct a healthy market for the transfer of land contract rights . . . based on the principles of legality, free will and adequate compensation for the peasants,” wrote Chen Xiwen, director of the office of the central leading group on rural work, in a party magazine published yesterday.

The first land use rights exchange was set up on Monday in the western city of Chengdu to allow farmers to sell or rent out the rights to use their land.

Qin Shikui, head of the state-owned Chengdu United Assets and Equity Exchange, which opened the exchange, said: “The peasants are very excited about this platform being set up. We have had lots of phone calls and people coming to our offices to find out more about the rules and hoping to transfer their land.”