Study On Diversified Financing Channels Of The Indemnificatory Apartments In China

As the fast development of economy in our country, investment in real estate market hasa swift growth driven by the market economy and thus housing prices rises. A series of socialproblems become a serious issue due to high housing price as it basically affects people’slivelihood. As a result, construction of indemnificatory apartments is now an importantagenda. Indemnificatory apartments is a public policy passed by the government to reduceinequality by providing basic accommodation for the poor. The government has come up withthe objective of building360million sets of low income houses in the ‘twelfth five-year’ plan.However there are lots of malpractices for the construction and development ofindemnificatory apartments. The government has difficulties in raising funds; it is thebottleneck restricting the development of indemnificatory apartments. Upon this background,the agenda now is to search for multiple financing channels, in order for the indemnificatoryapartments plan to succeed in our country. Have a plan which able to effectively use thecapital.This article will combine theoretical findings and empirical analysis by conducting astudy and research of the capital source of indemnificatory apartments in our country. First,identify the theoretical findings that support financing of indemnificatory apartments, whichincludes social security theory, Maslow’s hierarchy of needs theory, national incomeredistribution theory, public articles theories, fair distribution theory and so on. Second, doempirical analysis to the current situation of the financing for indemnificatory apartments,discussing the financial scale and structure of current indemnificatory apartments. And fromthe combination of the financial situation of indemnificatory apartments in some areas of thecountry, the government’s financial capital is found out to be the main investment source.What’s more, by analyzing the reasons above come to that capital shortage is the bottleneckrestricting the construction of indemnificatory apartments in our country, and then analyzesand summarizes the reasons for capital shortage.Take the experience of financing for indemnificatory apartments from some developedcountries for reference, mainly by analyzing practices from Singapore, Germany, France etc.We can get some important ideas. Integrated with the current situation of the indemnificatoryapartments financing in our country, come up with relevant multiple financing thesis. Thestudy in this article will continue to consider the financial investment from central and localgovernment as the main orientation. Based on this, explore commercial capital orientedmultiple financing channels, including loaning from bank, commercial insurance support, establishing of the real estate trust fund, issue security bonds, introduction of privateinvestment and so on. And come up with a series of new thought of opening upindemnificatory apartments administration, to build thorough matching system forindemnificatory apartments financing as powerful guarantee for realizing the multiplefinancing model of indemnificatory apartments.