Study On Capital Risk And Countermeasures Of Urban Land Reserve Agencies

As an innovation in the urban land reform,urban land reserve system plays a important role in many facts,such as regulating the land market,increasing the government's macro-control ability and speeding up the construction of urban infrastructure and urban economic development. Since China's first land reserve agency - Shanghai Land Development Center established in August 1996,many local governments establish reserve agencies and conduct land reserves operating activities according to their own conditions. With land assets run by land reserve agencies increasing large and large,demand of land reserve capital is climbing, the limited funding of local government finance departments is difficult to satisfy the needs of land reserve work, so land reserve agencies maintain normal land reserve works mainly through bank credit capital, capital-raising channel is single. People's Bank of China issued the121th document "For further strengthening the management of real estate credit business notice" in June 5, 2003, it had a certain restriction to the land reserve loan scale. In the macro-control background that the bank continued raises benchmark lending rate and tightens money supply, bank loan of the land reserve agency is becoming more difficult and financing cost is rising constantly. Meanwhile, the land reserve works is sensitive to policy environment, it refers to many sectors and stages, many uncertain factors exist, which bring about a certain risk to the capital the functioning of land reserve agencies.The article starts from capital operating state of the land reserve agencies in China, analyses the characteristics of capital operating; Further based on the supply chain theory, capital chain theory, the system changes theory, the theory of risk management, governance structure theory and project cost control theory and so on, according to the business processes of land reserve agencies, it puts forward the main capital chain management contents of land reserve agencies and the steps of capital chain re-build; the broad concept of capital risk is raised, analyses the main capital risks influencing factors in all stages based on the capital chain, in further the capital risk management system of land reserve agencies is studied deeply, including the establishment of the strategic and operating levels of capital risk management structure; the establishment of capital risk management regulation, including personnel training regulation, clear responsibilities regulation and perfect incentive regulation , scientific capital decision-making,use and monitoring systems, standardize the capital risk management and control processes and capital operating procedures and perfect cost-control mechanism; proposes that Urban Land Fund should be established, conduct the land asset securitization and the Land Trust Investment to expand land reserves financing channels, achieves diversification raise of the land reserve capital , then the capital risk of urban land reserve agencies will be prevented effectively.