Comparitive Stydy On Rural Property Rights Mortgage Financing Trial Models In Western China

Agriculture is the basic industry and pillar industry of China, and modern agriculturaldevelopment demands a large number of medium and long-term funding supports. Therefore,rural financial problems are core issues of agricultural development and have direct bearingon it. However, the quality and quantity of rural financial supply are far from satisfied,resulting in serious impediment on rural economic development. Without the capability tosupply for mortgage that in accordance with the demand of financial institutions, the capitaldemand of rural households is hard to be met. Inadequate investment to agriculturalproduction hinders the agricultural industrial development and farmers to get rich. Theimbalance between rural financial supply and demand is becoming the bottleneck in ruralfinancial reform. In order to make a breakthrough, it is needed to get started by dealing withthe difficulty faced by rural households to supply mortgage.The trial of rural property rights mortgage financing, as a financial innovation，have notonly realized rural households’ empowerment, but also reduced the credit risks faced byfinancial institutions, mobilizing the initiative of them to supply funds in rural areas. Underthe guidance of the document “The Instruction on Comprehensively Promoting the Innovationin Rural Financial Products and Services” issued in2010by four financial authorities ofChina including PBOC (People’s Bank of China), PBOC (People’s Bank of China), CBRC(China Banking Regulatory Commission), CSRC (China Securities Regulatory Commission)and CIRC (China Insurance Regulatory Commission)，regional exploration on rural propertymortgage financing trial have started and formed different models with different localcharacteristics according to their local situation.The first part of this paper introduces the background and significance of rural propertyrights mortgage financing trial, defines the content of this study, systematically formulatesand concludes the research status of the rural property rights mortgage financing trial in chinaand abroad, and then introduces the research methods adopted, the technical route and datasources used in empirical analysis and possible innovation points at the last.The second part is the theoretical basis of the rural property rights mortgage financing trial. The property rights theory, land property rights theory, theories about rural finance andrural land mortgage financing, theories about institutional change are selected and introducedto show the theoretical support of rural property rights mortgage financing trial and itspractical significance.The third part of this paper is the analysis on conditions of rural property rights mortgagefinancing trial. The conditions are discussed in terms of four aspects including governmentalpolicies, rural financial institutions，legal principle and law and societal environment. It isproved that rural property rights mortgage financing trial is a beneficial exploration andpractice, which is supported by governmental policies and financial institutions, accords withthe legal basis and fits the social development status.The fourth part is the comparative analysis of rural property rights mortgage financingtrial. Taking three typical models as examples including Tongxin County in Ningxia HuiAutonomous Region, Gaoling County in Shaanxi province and Yangling demonstration zone,the comparison is carried on by leading pattern, collateral coverage, mortgage procedure,characteristics, risk prevention mechanism and effectiveness of rural property rights mortgagefinancing trial, in order to reveal the commonness and differences among these models.The fifth part is the willingness and its influencing factors of rural households toparticipate in the rural property rights mortgage financing in Western China. Based onGeneralized Ordered Logit Model (gologit model) and the data collected by the surveys inGaoling County in Shaanxi Province and Tongxin County in Ningxia Hui AutonomousRegion, the empirical study shows that sex, and mean payment of rural households, debt level,the service and reputation, whether have family members being village cadre, whether knowthe experiment of rural property rights mortgage finance and whether have successfully getproperty rights mortgage loan are most influencing factors. After gologit regression, thepost-estimation is used to analyze each significant factor’s marginal effect and predictedprobabilities of rural households’ willingness. The conclusions are that male respondents,rural households with higher debt level and concentrating on agriculture production but at thesame time engaging in other industries are more willing to participate in the trial; positiveevaluation on rural financial environment, social capital, recognition on rural property rightsmortgage financing and success in acquiring the loan will promote rural households toparticipate in the trial. Because the trial models and their progress are different, theprobability distribution of rural households’ willingness of participation is significantlydistinctive.The sixth part is the analysis on constraining factors of promoting rural property rightsmortgage financing trial models. In the process of the trial, there exist some problemsincluding the lack of property valuation mechanism and standard, the lack of rural property rights transaction market, ambiguous market-orientation, institutional deficiency of ruralcredit environment. Pointing on these problems, some suggestions are proposed, which aremade up of the seventh part. In this part, it is suggested that it is required to accelerate thelegalization of rural property rights mortgage financing, promote the construction of ruralsocial security system，consummate rural property rights evaluation mechanism, formulaterural property rights circulation and transaction mechanism, promote rural credit systemconstruction, facilitate the formation of “four in one long-term development model”concerning government, banks, insurances and rural households, adjust to local conditions todiversity the forms of collateral rural property rights mortgage financing trial models.