Analysis On Subway Financing And Investment Mode Innovation

February15th,2012, the standing meeting held by the State Council of China putforward that “promote the strategic restructuring of State sector and reformsturning state-owned enterprises into standard joint-stock companies……andencourage the private capitals to enter the fields of railways，public utilities, finance,energy, telecommunications, education and medical treatment” when researching anddeploying the key points of deepening economic restructuring. Up to2011, there hadbeen30cities got the permission for building subways given by the State Council. Butas the subway construction scale enlarging, the problem of subway financing andinvestment is increasingly meaning, and has become the important bottleneck ofsubway development. The old governmental financing and investment mode can notmeet the increasing demand of subway construction fund. It is in urgent need offinancing and investment mode innovation so as to fill the requirement of the growingsubway construction fund. Hong Kong Metro is the few projects able to make a profitin the world and its mode of “Railway+Property”(R+P) has a very importantreference for the subway financing and investment mode innovation in interior of China.Based on the deep analyzing of theories on subway financing and investment, this paperfirst explores the status quo and problems of subway financing and investment in ourcountry, and then, gives the detailed cases analysis of financing and investment modeson Beijing subway and Hong Kong metro. Lastly, based on the contrast of the twomodes, this paper gets some suggestions for the innovation of subway financing andinvestment, which are in terms of precancerous planning, the financing andinvestment structure, asset and risk management, market-oriented operation,government control and policy supporting, as well as laws andregulations construction.