Securitization Research On The Rural Land’s Equity Of China

Rural land as the important factor of farmers, is the most important investment methodsand the main livelihood security of farmers, but the current rural land system is fairness andinefficiency, making the value of rural land has not only been fully exploited and also themajority of the rural labor force is tightly bound to the land. The lower advantage of rural landis the main factors restricting long-term development of agriculture. Due to policy and otherreasons,China’s financial industry investing to agriculture is inadequate and the originalaccumulation of capital is only from rural land. For increasing the financing channels, topromote rural land transfer, to achieve the purpose of large-scale land operation in China’srural areas, the implementation of rural land equity securitization reform is worthy of furtherexploration. Asset securitization is one of the most important innovations in the financialsector in recent years, financing through securitization is the trend of the development ofmodern financial, land is a economy resource with tremendous value. China’s rural landsecuritization is the securitization of the value contracted by the rural land,that is,the right ofland contractual management or the income generated from the contract rural land should betransformed into financial products which can flow in the capital market, and can enhanceagriculture’s competitive ability and resilience against risks, has a clear sense of economics. Ifwe can make full use of the land as a value-added and non-renewable resources to implementthe land equity securitization for financing and mobilizing extensive social capital, providinga viable financing channels, the problem of restricting China’s agricultural development whichis lack of effective long-term capital will be solved. This paper turned into a study of ruralland equity securitization,based on the issues of rural land property rights, combined with thebasic national conditions of China’s rural, building the farmland securitization mechanism.This paper is divided into four parts:The first part is the introduction part. This part analyzed the international economicsituation the rural land situation in China,described the research background, defined thedirection and framework for research,and pointed out the innovation and inadequacies of thispaper.The second part is the basic theory of the equity securitization of the rural land. From theconcept of equity of China’s rural and the concept of asset securitization,combined the basictheory of China’s land, and put forward the basic principles of equity securitization of the rural land, paved the way for the below.The third part is a comparative analysis of the overseas rural land securitization. Thissection draws on developed countries (regions), Germany, the United States, Japan and ChinaTaiwan’s development experience and organizational model characteristics. From the followaspect: the support of government, the dedicated special purpose vehicle, the perfect legalsystem, to analysis the implementation of rural land securitization and draw lessons from theexperiences. And obtain a primary prerequisite for the implementation of rural land equitysecuritization, which is the concept of land property rights.The fourth part is the framework of securitization of rural land equity. First,analyzed thedefinition of the land which is good for securitization,and the feasibility for implementationof land securitization. Then to quote the principles of asset securitization, the securitization ofrural land each to participate in the main body, and is designed to run the basic flow.Described the implementation of rural land equity in securitization should grasp the followingprinciples in our country.The fifth part is the future development of the securitization of rural land equity. Thispart analyzed the significance of securitization of rural land equity for rural development ofChina, pointed out the obstacles in the development,as well as put forward specific policyrecommendations and other measures in order to solve the main problems for thesecuritization of rural land equity in China.