China's Choice Of Financing Method Under Financial Crisis

Since last year, the global has headed into a rare financial crisis. Following the United States, the other countries of the world have also started showing a downward trend in their economy. Faced with the severe economic situation, China has put forward four measures, one of which is to promote domestic demand through infrastructure construction. In this context, the thesis proposed the viewpoint that choosing BOT financing mode to construct the infrastructure and made a comprehensive analysis of the reasons for selecting BOT mode and its various impact for both the government and the business by using relevant model from the concept, characteristics, operation, risk prevention and otherwise of the BOT mode.Firstly, from the government point, the thesis mainly compared and analyzed the three major ways of government financing: government borrowing, BOT and absorbing loans from financial institutions from four criterion: economic criteria, financing criteria, risk criteria and operation criteria, and obtained the conclusion that BOT mode was the optimal financing way for government through AHP model.Secondly, from the business perspective, after getting the conclusion that BOT mode was the best way for government to construct infrastructure under financial crisis, the thesis discussed China's equity financing preference and its relationship with liability. Also it further studied the impact of BOT for business through the multivariable-linear regression model, with asset-liability ratio as the study index.Finally, sum up BOT's operation characteristics and development situation in China, and put forward relevant measures and innovative application ideas.The feature of the thesis is that it discussed the new financing mode-BOT under the specific background: financial crisis, and establishing relevant models to do the analysis and research, with the combination of China's relevant policies and real situation, which made the conclusion more scientific and convincing. Moreover, in the end of the thesis, author proposed a bold personal suggestion, which made the paper with more practical significance and innovation.