Study On Financing Problems And Measures Of Indemnificatory Housing In Hebei Province

Indemnificatory Housing(IH) is an important part of the social security system in China, so government, being in charge of public management, should shoulder the responsibility. This paper is divided into four parts. The first part analyzes the important role the government plays in ensuring the construction of IH from the view of social security function of public management, such as providing for the mass, widening the demotic need, assuring the steady development of real estate market. The development of IH in Hebei province is also outlined in the first part, showing that IH started late in Hebei and needs further improvement. The second part analyzes the merits and demerits of the financing measures taken by both developed countries like America, England, Singapore and Japan, and by regions in China such as Hong kong and Tianjin, in order to learn from them. The third part studies the problems and obstacles facing the constructing of IH in Hebei province, such as the mismatch between the IH project and its bank credit, low bank credit, high financial pressure on the local government, low profit, and so on. The last part explores the effective measures to solve the problems by utilizing the functions of government and banks, using measures like government as the leading role to allocate resources effectively while attracting banking and social resources, in order to improve the financing situation and ensure the sustaining development of IH in Hebei province.This paper puts forward two new ideas: firstly, utilizing public management with the construction of IH. This paper proposes that the government should exercise its public finance power to diversify the financing measures of IH by attracting money from banking and other social resources by leveraging the public finance. Secondly, it proposes measures to solve the present problems by both using Hebei as a case study and comparing situations in different countries and areas. The paper proposes that the financing mode of Hebei province should be based on the construction and imprudent of the government financing platform in order to push forward the renovation of financial system and asset securitization, construction of state-owned financial institution, so as to improve the financing system and ensure the construction of IH.