Characteristics And Performance Evaluation Of PPP Investment And Financing Mode

Under the influence of super debt cycle and adjustments to imbalances of the world economy, the adjustments of investment growth and trade growth exceed expectation of nations. The impact of the new mediocrity and great stagnation of the world economy on Chinese economy exceeds expectation. As a result of sluggish domestic demand and exports, infrastructure investment has become the main driving forces of economic growth in China.All along, China’s infrastructure construction mainly relies on the government leadership. Land finance is the main source of funds for infrastructure construction. With the acceleration of urbanization process in China, local governments face tremendous pressure in infrastructure construction and land finance becomes hard to go on. Governments can only choose to obtain financing by the mortgage of land value, and then rely on the land transfer income to repay the loan. But only under the premise of rising land prices, local government funds chain will not fracture, which brings some hidden troubles to the local government debt risk. This is clearly contrary to sustainable economic growth.With the turning point of Chinese real estate cycle, local government debt risk is increasingly prominent. To close the funding gap, relying on financial expenditure is not enough and impetus must be given to financing marketization. At present, eighty percent of the local government debt results from infrastructure construction. How to effectively guide the social capital to enter the field of infrastructure construction has become the priority.Therefore, reform and innovation of financing mode must be carried out, include the ease of access conditions and the introduction of social capital. Setting up the financing systems with diverse sources of investment and financing channels has emerged as a key priority to the healthy development of the infrastructure construction.From the Public-Private-Partnership value evaluation perspective, the article is dedicated to solving the disarray of Public-Private-Partnership in China. Combined with specific case for empirical analysis, the article has reference significance to the development of Public-Private-Partnership in China.