The Study On The Financing Pattern Of Indemnificatory Housing In China

With the speeding up of economic growth and urbanization, the market of real estate in China has experienced great development. It is obvious that the overall housing standard of urban residents has been significantly enhanced, whereas the housing price of high property far surpasses the income level of the mid and low income stratum, whose housing problem can hardly be solved by the regulation of market discipline. Housing contradiction is also the biggest livelihood issues that our country has to face and cope with. Therefore, establishing housing security system, quickening the construction and supply of indemnificatory housing, and ensuring the housing of the mid and low income family, all these have become the current issues that our society must focus on solving.Real Estate Finance is the catalyst and accelerator of the housing industry development, while capital is both the basic guarantee and main bottlenecks of indemnificatory housing construction. Since the indemnificatory housing is featured with the properties of Public Goods and Positive Externalities, economic efficiency is less oblivious, and the market mechanism can’t play its role sufficiently. In this case, the government intervention is needed. In face with the colossal fund demand of the indemnificatory housing project, the key issue needed to be tackled for the leap forward of indemnificatory housing in China is about how to combine the features of indemnificatory housing, actively explore the new mode of capital raising, and raise funds from multiple channels to satisfy the construction demand.This paper chooses the indemnificatory housing as research object, and the capital raising mode of indemnificatory housing construction as the main research contents, aiming at exploring direction of solving financial gap of indemnificatory housing construction, striving to set up a new mode of fund raising which can be practically popularized in China, and finally forming a new situation of the indemnificatory housing construction pattern dominated by government, centered with market operation and having multilateral participation, sharing the interests and risks.The first part of this paper introduces the research background, research meaning, research methods and research thinking of the article. What’s more, this paper also analyzes the primary problems existing in Chinese indemnificatory housing as well as the dominating fund raising model, thus pointing out the necessity of broadening the fund raising channel of indemnificatory housing in our country. Next, the paper makes a comparative analysis about the fund raising experience in constructing indemnificatory housing of different countries, studying the common factors of indemnificatory housing policy, the ways of government intervention and fund raising mode in America, Germany and Singapore etc, from which obtain several enlightenments. Based on these analysis above, combined the practical construction progress of indemnificatory housing in China with the characteristics of fund raising mode, the paper also reveals in detail the indemnificatory housing Investment Trusts and PPP these two fund raising mode, thus putting forward a envisage of taking the government as background and relying on state-owned investment company as fund raising platform.