Mortgage For City New Development

For underdeveloped cities in middle and west part of China, a lot ofproblems still exist including weak economic foundations, lack of publicinfrastructure, low environmental sustainability, slow pace of industrialdevelopment and small fiscal size. The mode of mortgage for city newdevelopment is a new kind of investment and financing system which couldentirely explore existing stock urban resources, capital utilizationeffectiveness, and optimal capital deploy. Moreover, this approach couldsurely accelerate development speed and new module of scientificdevelopment, which makes it only way for city development in the middleand west China.Currently, mortgage for city new development is still a new thing, andthere is no completed system yet. This research systematically discusses the theory of mortgage for city new development. The theory indicates thatmortgage for city new development is mortgaging property rights of variousresources and capital, expected benefits from city development, and othereconomic benefits to parties in capital market, by market-oriented operations.With this means, various types of capital can be financed，future benefitscan be cashed in order to optimize the utilization of capital and resources thatcould be used to develop most needed business and projects, as well as breakthe bottleneck of city development. Moreover, it can help to operate the cityeconomy from the macroscopic viewpoint and boost the city development.The government, enterprise, and public are the main executor, urban land,infrastructure and intangible assets are the object, and capital and itsoperation are the nature of mortgage. The principal of city mortgage isgovernment guidance, scientific development, and market operation. Theobjective is to improve urban functionality, urban competitiveness, urbanvalue, and life quality. And the effectiveness is to change government duty,resolve cash short, research maximum benefits, create more social values.The thesis focuses on systematic design of mortgage for city newdevelopment, and three sub-systems are presented to comprise the wholesystem, which includes the city investment and financing sub-system basedon capital, the capital management sub-system based on optimal benefit purpose, and the financial sub-system based on all-around financial services.The city investment and financing sub-system represents direct and indirectfinancing approaches. The capital management sub-system representsapproaches optimizing benefits of land recourses, city capitals, andgovernment financial operations. And the financial sub-system representssome detailed measures building up social credit system and financialenvironment.As the major executor of city mortgage, government is responsible formain risks, and assures city mortgage being scientific, health, and sustainable.Chapter six mainly elaborates the guidance duty, adjustment duty, supervisionduty, and improvement duty of government during the mortgage process.This thesis is to explore and to present a new system and more practicalfor city new development, according to sufficient practical experiences anddifferent relevant theories of mortgage for development. The system haspowerful guidance and real meaning for the great-leap-forward developmentof late Development cities at middle and west China.