The Research Of Investment And Financing Patterns And Safeguard Mechanism On Chinese New Village Residential Construction

It has been pointed out in the report of the17th China National Congress that the most important task of the Party and Chinese government is to coordinate urban and rural development, improve the building of new socialist rural areas and deal with the relationships of agriculture, rural areas and farmers, which counts for the building of a moderately prosperous society in all respects. To a great extent, the overall level of a nation’s rural residence construction reflects its productive developing situation in rural areas, the living standard and quality of farmers and rural civilization and village views. The construction of rural residence is the vital link to the building of Chinese socialism new rural areas as well as the specific representation of conducting as the Party’s spirits. More accurately, investment and financing play an extremely significant role on all parts of the new rural residence construction, concerning whether the construction can be carried out directly.In terms of the current situation in the realm of Chinese rural residence construction, problems, such as obvious conflicts between finance supply and demand, severe lack of capital credit and loan, difficulties in financing and loan for farmers and the lack of ways to financing, still exist in these investment and financing areas, which restrict the building of Chinese rural residence construction. On the other hand, the development of Chinese urban residence is mature and has achieved great long-term progress, however, the gap between urban and rural residence construction is still obvious.Based on the background above, this paper relies on a National Science and Technology supported key project:Research on technological standard frame of rural residence planning and construction(project number:2008BAJ08B16),to have deep and detailed insights into Chinese rural residence construction and current situation of investment and financing, identify the factors restrict the investment and financing of Chinese new rural residence construction, which includes lack of political financing supports, commercial financing profits transfer from rural to urban areas and institutional flaws in financing cooperation. On account of these restricts, this paper holds a view that rural financing system innovation is the significant breakthrough to solve the financing conflict between supply and demand in current Chinese new rural residence construction. This paper applies system dynamics causal loop diagrams, stock and flow chart model, Clustering analysis of multiply statistic method, fuzzy comprehensive evaluation in order to build a forecast model of investment and financing supply and demand,5patterns for new rural residence construction investment and financing as well as an assessment model for investment and financing effect. In addition, an example of "home-site for flat" pattern in HuaMing town (TianJin) is taken to have investment and financing performance evaluation. Finally, political recommendations for investment and financing in Chinese rural residence construction are made from different viewpoints. Main conclusions are as follows:(1) Identify the most direct impact that affect investment and financing behavior. Include:policies and financial support, local officer performance indicators, expectations for residence construction program, borrowers’repayment capacities and willingness, finance opportunity costs and bad debts risks, social capital participation, financing costs and difficulties, building and purchasing costs for residence.(2) Propose the key factors to solve the rural residential construction investment and financing problems. Include:change the current assess situation that local government performance takes economic development as the single indicator, take local livelihood development and environment protects into the assess system; enhance financing supervision, eradicate rent-seeking of local officials; improve farmer credit system; vitalize rural land resources, realize capitalization operation; lead social capitals into the realm of new rural residence construction financing, explore multiply financing pattern.(3) Draw the investment and financing demand forecast system flow diagram of rural residential construction, evaluate the difference between supply and demand. Use vensim PLE software to draw the investment and financing demand forecast system flow diagram, the difference between supply and demand is positive, indicating that demand for funds has not been fully met.(4) Make a construction of investment and financing mode depending on financing subject and channels. The economic development level of China’s vast rural areas is quite different, it is impossible to use a financing model to solve all problems, according to differences in financing bodies, Chinese rural residence construction financing patterns are divided into5types:self-financing pattern, local government financing platform pattern, real estate firm dominating pattern and land resource financing pattern, policy and cooperation finance complementary pattern. (5) Make a cluster analysis of rural areas, and find the most suitable financing mode of each group. Shanghai group’s most suitable mode is self-financing model, Liaoning group’s most suitable mode is local government financing platform, Sichuan group’s most suitable mode is land resources financing mode, Xizang group’s most suitable mode is policy and cooperation finance complementary pattern.(6) Establishing finance protection mechanism which includes fiscal finance leading mechanism, finance innovation mechanism, law protection mechanism, farmer credit mechanism, risk sharing mechanism and risk compensation mechanism. In order to successfully guarantee the demanders to raise capital for rural residence construction and lower the investment risk of suppliers such as finance institutions.(7) Proposes10policy recommendations in terms of financial support, the rural financial system innovation. This paper argues that, broadly speaking, the government’s policy guidance is also a way of financing, it can guide the various types of capital into the construction of new rural residential areas, therefore, this paper put forward specific policy recommendations from financial support, rural financial system innovative, the credit environment construction, etc.Innovations in this paper include:first, make a system analysis of new rural housing construction investment and financing behavior by using causal loop diagram of system dynamics model, provide an innovative analysis method for investment and financing decision-making among multiple body; second, select five indicators include new residential area and use the cluster analysis method to make a strategic grouping on China’s vast rural areas; third, make a construction of quantitative forecast model for investment and financing supply and demand in new rural residence construction by using system dynamics stock and flow charts model; fourth, based on national conditions of China’s socialist development stage, build the rural housing construction investment and financing mode and safeguard mechanism; fifth, based on DHGF comprehensive evaluation method, build a performance evaluation model of new rural housing construction and take an empirical test.