On Shenzhen Urban Renewal Asset Securitization

Shenzhen is one of the fastest growing cities in China's urbanization process.Behind the high urbanization rate,the contradiction between the shortage of urban construction land resources and the sustainable development of the city is increasingly prominent.In order to solve the urban development problem of Shenzhen and improve the urban comprehensive function,Shenzhen promotes urban renewal,which has become the most important way to promote industrial upgrading and transformation and increase housing supply.Due to the large amount of capital demand for urban renewal projects and the long investment recycling period,the shortage of funds is the top issue for the city's renewal.Therefore,the Shenzhen government encourages the expansion of diversified financing channels and the participation of social capital in urban renewal.This paper sorts out the financing methods of each stage of urban renewal,and points out that asset securitization has the characteristics of low financing cost and high financing quota,which can be an effective way to solve the financing dilemma of urban renewal.However,due to the complex operation of asset securitization and many obstacles restricted by policies,it has not been widely used in urban renewal.This paper selects two different types of asset securitization cases,namely Xinpai apartment and Yangzhou affordable housing,and respectively introduces the application of asset securitization in operation and development urban renewal.Based on the case analysis,this paper summarizes the key points and matters needing attention in the application process of asset securitization,points out that asset securitization can be used as an important financing channel for urban renewal in Shenzhen city,and proposes to establish a pilot project for developing urban renewal asset securitization in Shenzhen city.