Research On Policy Finance Supporting New-type Urbanization Construction In Liaoning Province

The present urbanization rate was 55.4%, below the level of developed countries.In recent years, the economic development level of our country gradually improve, hasbecome the world’s second largest economy entity. The development of urbanization isgoing on with the constant improvement of China’s economy. As our country’s oldindustrial base, the urbanization level of Liaoning province has been in a leading position,getting 66.5%, higher than the national urbanization rate of ten percent. Although it has agood performance, simply measuring from the number of the population doesn’t workwell today. Now we need to think about the urbanization rate from the people’s quality.We need to pay more attention on people except the number of the population.Our realgoal is turning the farmers to the citizens. So our province should take a newurbanization road.China’s policy financial institutions are represented by the three policy banks. Innearly 20 years, the policy financial institutions have support the development of thevulnerable groups but are in important positions. For the lack of accurate location,relevant laws and regulations, policy financial institutions have different restrictions oninvestment in many areas. Many cities and counties in our province is now into theresources swamp of exaust resources. The economy lacks adequate power to advance.Taking the new urbanization’s road, it just give the chance to help Liaoning province tochange the pattern of the traditional industries.It will also provide fresh impetus to theeconomic development of Liaoning province. In the process of the urbanization’sdevelopment, infrastructure construction and industrial structure’s adjustment requires alot of money.In the current economic environment, commercial Banks don’t have thestrong willing to step into the field because of the risks,loans time limit and theearnings.The direct financial is hard to be connected to the construction of urbanization.Only relying on the traditional investment of the government and model of transferring ofland is limited. At this time the policy financial institutions should play a policy-orientedand fostering financial role to support the construction of the urbanization, giving thebiggest support.This paper discusses the policy finance and new urbanization theory. On the basisof the functions, this paper analyses the effect of support that the policy financialinstitutions give to the construction of the urbanization. It also analyzes the policyfinance and urbanization’s construction in Liaoning province. It also gives a large numberof examples and uses the method of grey relational analysis to test. It shows thaturbanization construction can’t depart from the support of policy financial funds. Finally,giving the experience of the success of the domestic and foreign policy financial support,we get some advice on the policy financial helping the construction of the urbanization inLiaoning province.