Research On Investing And Financing Of Government In New Town’s Development

Government is the main body of resources allocation, especially in the fields such asmarket failure, bad economic benefits but good social benefits and high cost ofallocation by market. It’s the main ways to construct financing platform for localgovernments funds collection. However, capital scarcity has been becoming one ofthe most important restrictive factors for new town development.In the theoretical part, on the one hand, this article surmmarizes achievements of newtown planning&development, and investing&financing of local government; on theother hand, it inducts local government investing and financing practice andexperience home and abroad.In the empirical part, firstly, by comprehensive analyzing the strategies of FusongNew Town, this research holds that the main fields of government investing andfinancing are infrastructure construction and reconstruction, social undertakings,ecological construction, and ecological migration. Secondly, according to investingand financing characteristics of the above fields, we can incorporate them into towmain fields, which are public goods and ecological migration, to plan nvesting andfinancing mode. Besides financial investment and Hengxin investment managementlimited liability company, public goods of Fusong New Town still needs the supportof external funds, technology and management, and private capital; however, the mainpoint of ecological migration is housing construction of immigrants, which aresupported by policy based finance, such as central government grants, special fiscalfunds, land transfer fee, and so on, which are assisted by other funds. Thirdly, in orderto satisfying the need of Fusong New Town development investing and financing, weshould take measures to enhance guarantee system construction as follows:1)specifying financing platform,and improving investment and financing ability;2)perfecting risk management system, and guarding against investment and financingrisk;3) innovating financial market system, and intensifying market support function;4)innovating system and mechanism, and advancing the development ofnongovernmental investment.