The Research Of Financing Model For Private Capital Participate In The Urban Renewal

With the development of the modern city, many cities have bad environment, live in crowded and don’t have a complete set of infrastructure. It not only seriously affects the city appearance and citizens’ live quality, but aiso becomes the bottleneck of city development. In order to realize the harmonious development of the society, promote the city image and improve the livelihood of the people, urban renewal has become a problem that local government at all levels needs to solve urgently. But at present,the funds of urban renewal mainly come from fiscal investment and bonds which based on the local financing platform and bank loans, which have brought huge debt pressure to local government. In this context, it has important practical significance to explore the local government financing patterns of innovation, to promote private capital to participate in urban renewal and broaden the financing channels.First,this paper analyzes the necessity and feasibility of the private capital to participate in the urban renewal. Then, building a PPP (Public-private partnership, public-private partnerships) model framework for the private capital to participate in the urban renewal. Third, analying this model from organization structure, capital structure, contract structure and operation process. What’s more, taking use of utility model and shapley value model to carriy on the quantitative analysis of risk sharing and profit distribution. At last, building an government regulation system from the aspects such as principles of government regulation, regulatory framework, regulatory content and methods of construction of urban renewal in the PPP project.Finally, putting forward policy suggestions for the government to promote folk capital to participate in the urban renewal projects.