A Research Paper On Expressway Financing In China

The expressway is a cornerstone for the economic development, also regarded as a symbol of social modernization. In recently years, the expressway construction in China has made remarkable achievement, but there are problems in its financing, mainly in two aspects: the high percentage of bank loan has led to an unreasonable funds structure, and, a foreseeable funds shortage in its future development. Hence, it is pressing that the financing system needs innovation and new source of fund needs to be explored. Starting form the financing theory, this paper intends to analyze the various models of financing for expressway construction, as well as the issues existing. With regards of considering the specialities and strengths of expressway financing in China, it proposes its development strategies and describes its prospect. It also specially discussed the innovation financing means, the control of financing risk and specified role of the government administration in terms of new concept thinking.This paper consists of four chapters. In Chapter I, the basic theory of project financing and an assessment in terms of advantages and disadvantages are introduced; following is a detailed analysis of the financing models and the selection of the models in China expressway financing; the adaptability of the models and the necessity, opportunity and ability of China expressway financing are explained in Chapter III; then, at last, Chapter IV, as the key part of this paper, includes an in-depth analysis of the issues existing and the strategies of dealing with them, consequently a forecast of its tendency of development.