Study On Financing Problem Of Public Housing In China

Nowadays, China is still a developing country with a large population which leads to many problems in the housing sector. Although China had several explore and progress to solve this problem, there still have a long distance in the field of income level and market development compared with some developed countries. In recent years, the price of housing market is still rising while the ability of residents to afford the house is continuing declining at the same time; housing problems have become increasingly prominent contradiction. Therefore, accelerating the construction of public housing, to solve the housing problems of urban residents, improve people’s livelihood and promote social harmony and sustainable development has a very important significance. However, the process of building public housing, the money demand, financing difficulties and other problems have seriously hampered the development of public housing construction. According to requirements of the "Twelfth Five-Year Plan" proposed, in the period of "Twelfth Five-Year Plan", the task of building public housing in the country is36million units, according to estimates; they need to invest at least5trillion Yuan in this field.At present, the construction of public housing, is to highlight the problems faced by a serious shortage of funds, the limited capacity of the central and local governments, and social capital injection is not enough, have seriously hampered the pace of development of public housing construction. While in some other advanced countries and regions, in terms of protection of housing construction financing has some successful experiences, such as to guide the injection of private capital by way of government subsidies, according to the market environment and the continuous development of innovative financial products to boost capital market participation and so on. These are brought to the construction of public housing funds to solve the plight of a lot of inspiration, protection of sources of housing construction funds, the need to build a diversified financing channel.The purpose of this paper is to seek in the framework of the existing system, the system of national development needs and policy of public housing combined under a common role in government intervention and market regulation, by comparing the domestic and foreign financing in the protection of housing construction the current success stories, learn from the advanced experience of foreign countries and regions, with China’s basic national conditions, to explore diversified financing channels and ways to build a sound financing system, financing innovative financial instruments based on the formation of the government led by the operation of the free market, multi-joint participation, benefit-sharing and risk-sharing to achieve affordable housing finance new pattern, the better to promote private capital to participate in the construction of public housing in the past. Thus speeding up the pace of construction of public housing, and promote the construction of public housing financing system for rapid and sustainable development.