Financing model of New urban construction in China

Abstract

With the continuous development of China's urban construction, China's urbanization rate has increased from 17.92% in the early stage of reform and opening-up to 63.89% now. At present, urban construction in mainland China has reached the present stock stage from the initial expansion stage, and more and more infrastructure has been completed. China is going to strive to create an enabling environment for people to work, live, enjoy and travel, so that government will create a greater sense of gain and create a happier and better life for the people. But a new era for the construction of the urban construction will lead to higher costs, as the stock of the real estate market has reached the age, at the same time, each region of government began to implement measures, for the most of the local government gradually out of the land within the revenue, in this case study the new era of urban construction investment and financing mode is particularly important. Local governments need to attract more social capital to participate in urban construction in the new era by updating their own investment and financing modes. This paper first expounds the background of urban construction in the new era, then analyzes the investment and financing problems existing in Local governments in China, and finally gives suggestions at the national, provincial and project levels according to the current specific policies.