Research On Improvement Of Changsha Mei Xihu Infrastructure Project Financing Mode

urbanization is a non-negligible part of modernization of our country. At present,our country’s urbanization entered the stage of accelerating development, theemergence of new features, city clusters and large and medium-sized city has becomethe main trend of future development. In order to alleviate the pressure from large citypopulation, traffic, environment pollution, local governments have implemented newsetting off a new town construction boom comprehensively.New town development is a long-lasting systematic project which demands alarge number of infrastructure constructions in the first phases. In the current taxsharing fiscal system, local governments lack the main source of local finance, localfinance is basically "feedy finance" due to a serious lack of construction funds andcomprehensive reliance on infrastructure funding to complete the new towndevelopment. The financial problem has become one major factor that restricts theprocess of new town development. It is vital to find a proper means of financing forthe infrastructure constructions in new town development. The determination of thesubject of financing, selection of financing modes are determinate to the realization ofnew towns’ functions and the enhancement of their quality, they are even the directinfluence that determines whether the whole project can succeed.This paper systematically summarizes the existing findings of new towndevelopment and infrastructure construction financing mode, summed up the domesticand foreign new town development and construction financing experience andpractice. We conducted an intensive study on the infrastructure constructions duringthe new town development process of Changsha Mei Xihu and summarized itssuccessful experiences in bringing in strong real-estate companies as the mainfinancing subject, scientifically combining projects and properly nailing the landincrement benefit distribution mechanism. At the same time, we have also done anin-depth analysis of its problems such as its main financing subject being single, theproportion of equity financing being low, and its bank loan concentration risks beinghigh. After the pros and cons, we put forward a set of relatively mature mode for thepromotion of new town development in infrastructure financing, and are lookingforward to providing reference and guidance for the domestic development of newtowns in infrastructure financing.