Research Of Urban Infrastructure Financing Model

With deepening of reform and opening up, China’s urban infrastructure develops rapidlyand urban infrastructure turns planned to market-oriented. In "12th Five-Year" period, China’surbanization will be further developed. Urban infrastructure construction will be moresystematic and institutionalized in future. Improvement of urban infrastructure relates tourban production and living standard, and to provide protection for the economic and socialdevelopment.Urban infrastructure needs a lot of money, a long construction period, and low rate ofreturn. So relying on the funds of government financial support has been difficult to meet theneeds. In addition to traditional government investment, bank loans and urban infrastructureenterprises should establish a wide range of financing methods, and expands ofcomprehensive financing channels to solve the key issues for urban infrastructureconstruction.In recent years, China attempts to use urban infrastructure urban infrastructureenterprises and urban investment company. These provide a scientific and standardizedmanagement, and give a new way to urban infrastructure financing. Changchun UrbanDevelopment (Group) Co., Ltd. is municipal directed by Changchun government. It is astate-owned enterprise. It gradually expands to a large company and joins the construction ofChangchun city and provides the financing of urban infrastructure in a decade.This paper analyzes the characteristics of the construction of urban infrastructure andcommon modes of financing systematically. And it uses Changchun Urban Development(Group) Co., Ltd. as an example. In this paper, it analyzes the way of financing and countsthe needs of funds and researches the structure of assets and liabilities, solvency andprofitability through the financial data. And next it puts the financing model design forward.At the last it provides the suggestion on urban infrastructure construction financing.