Compensatory Means Of Land Finance Based On The New-style Urbanization Strategy In Henan Province

New-style urbanization strategy is an important economic policy of China. It will stimulate domestic demand and promote economic growth in the future. But the former urbanization in China was land urbanization, which lead to the land finance. The land finance brought a series of economic and social problems in China, such as high housing prices, income gap and financial risks. As a central province of China, Henan province was in the core area of “Rise of Mid-China” Strategy. And the new urbanization, which needed a large amount of fund and land support, was still in infancy period. If Henan province still imposed “land urbanization” type, local governments will increasingly rely on land finance, and the relevant risks will continue to ferment. This paper attempted to find a long-term financing mechanism for town construction, which named Compensatory Means of Land Finance. The means were aimed to reduce the land finance dependence of local government, and suited the funds needs of the new urbanization in Henan province.In order to find out the Compensatory Means of Land Finance, this paper first explained some concepts and theories about land finance, then analyzed rationality of land finance. Then the paper researched the sources and expenditures of Finance and "land finance" in Henan. At the same time, the paper described the land utilization condition of Henan. Base on the land, utilization and finance condition, we deeply analyzed the formation mechanism and influence of "land finance". The results shown that the cause of land finance were internal factors and external factors(institutional environment). Then considering the land finance and new urbanization development, the paper put forward some principle and thinking framework of choosing the Compensatory Means of Land Finance, then listing two means of Land Finance-Substitute.The results shown that,1)There are 71.3 trillion funding gap between New-style urbanization development and public finance income of Henan Province in 2014-2020. In the case of adequate agricultural land and less funding sources, the government will have a strong incentive to get more revenues from land conversion;2) The land finance of Henan province had certain promotion function to the urbanization and the GDP, but this kind of promotion effect will gradually weaken. The negative effects(such as widening income gap, raising housing prices and financial risks) brought by land finance lead to its unsustainable nature. So it need to find out some Compensatory Means of Land Finance; 3)Land finance is The results of institutional factors, strong official incentive mechanism and weak constraint mechanism;4) According to the characteristics of finance and economic development of Henan Province, there were two means of Henan Compensatory Means of Land Finance. One means was to levy state tax, anther one was to expand some new financing channels, such as financial –institutions –financing, public-private-partnership and issuing bonds.5) There are some safeguard measures for the implementation of the Compensatory Means of Land Finance in Henan Province, the first one was optimizing the performance evaluation index, the second one was supporting the development of financial institutions. The third one is reforming the state-owned land management system and land expropriation system.The last one measure was educating more financial talents.