Research On Financing Of Chinese City Infrastructure Investment Corporation

As a result of the accelerating urbanization in China, the capital of urban infrastructure is increasingly needed. City infrastructure investment corporation(here in after-CIIC) mainly engaged the investment, financing and city construction during the quite past period, as an engine dramatically propelling economy growth. However,problems and frustrations such as bank over-indebtedness,lack-of-diversity financing channel, weak sustainability, over-dependent on government finance and land policies,insolvency pressure arose during the progress and, to some degree, undermine the domestic financial market and national economic stability. Government has strengthened the macroeconomic control and issued series of policies to regulate the CIIC financing, on which CIIC starting to change for survival. Therefore, the reform and innovation of CIIC management has become imperative.This thesis adopts three major research methods: first, through reviewing the references of CIIC financing to realize the latest theories and researches in government investing and financing platform by scholars and experts; second, comparing and analyzing the ways of fund raising among different cities to sort out respective strength and weakness. Third, citing a model case as a typical representative for the majority of CIICs developing status in small and medium-sized cities to study,analyze the existing problems and propose the recommendation for improvement. Following the review of the CIIC emergence and progress, this thesis detail the analysis of the strengths and weaknesses as well as range of application of the major financing channels, revealing the existing problems and reasons of the fund-raising modes. Combing the theories and realities, this thesis chooses X CIIC as an example, and puts forward the specific and innovated approaches of local government establishing financing platform.This thesis abandons the traditional methods of researching the advantages and disadvantages of the CIIC financing, it bases on the development of the unban,analyzes the external environment, assets composition, resources, and financial risks of the CIIC, then combines development modes, company strategies and financing modes to seek an innovative solution, makes all factors harmonic match. Besides, the innovation of land financing after land reserve system reform is also a highlight of this thesis.