Research On The Financial Support System Of China' New Urbanization

Affected by the continuing downturn of domestic and international economic conditions,China's economy encounters more and more pressure of downward,and the construction of the New Urbanization becomes the major carrier,which helps to maintain investment scale,as well as the economy growth.New Urbanization contains the traditional municipal infrastructure construction,as well as the social security and livelihood investment.There are huge financing needs.Existing financial support mainly comes from the local government and bank loans,which provided huge financial support for the original urbanization,but also formed more than ten trillion debts for local government.Local governments assume most of the investment and financing responsibilities on urbanization,but earnings retained are far from enough.They have to rely on land sales and debt to support these responsibilities.At the same time,under the pressure of performance evaluation mainly bu the GDP growth rate,various places put themselves into the "go faster" infrastructure construction.Investment scale and speed exceed the capacity of local fiscal.Most of the local government is unable to repay huge debt of urbanization,and often extend the deadline of existing debt maturity through new borrowing or bonds replacement,and so on.In this context,the government and banks can hardly to provide incremental financing support for the New Urbanization,and the existing financial support contains large liquidity risk.Therefore,the study of New Urbanization's financial support issues is realistic urgency,whether in the perspective of promotion of New Urbanization,or in the view of financial risk's prevention and control.Based on the research above,this paper firstly reflects on the unsustainable of existing financial supports,and points out that the root cause of this problem is its lack of systematicness.Subsequently,following by the functional financial theory's research route of"Target-Environment-Function-Structure",this paper constructs Financial Support System of New Urbanization,based on the domestic and foreign practice experience,and commits theoretical analysis from the financial support system's three dimensions of length,width and depth.Therein to,the "length" refers to the financial support system's sustainability in a matter of time,"width" refers to the comprehensive sources of funds,and "depth" refers to the financial support system's foundation and reliability.Through theoretical research,the paper finds that:(1)The financial support system should optimize the relevant system arrangement firstly,in order to be sustainable.Specifically,the government should reduce the direct intervention in the economy,while strengthening the supervision of the financial revenue and expenditure,and break the arrangements of urban-rural dual of property rights and household registration system;(2)The government should clearly defined the division of functions between the various financial institutions and their relationship with the social capital based on the nature of the funds.This is the key to broaden the financing channels.Policy oriented finance should focus on providing more financial support for the non-operational urbanization projects,while the commercial finance is focused on the service of the entity economy and some of the operational urbanization projects.Social funds should provide more equity financing support to improve the financing structure of urbanization;(3)The key for government to strengthen the fiscal guiding function is to develop the entity industry,improve the retention of fiscal income,and improve the investment and financing efficiency.In order to verify the conclusion of theoretical analysis,this paper uses the analytic hierarchy process to study the relationship between the three dimensional financial support system and the New Urbanization.First of all,based on the theoretical analysis of the three dimensions of length,width and depth,the paper extracts all levels of indexes,constructs the index system,and determines the corresponding weights.Then it selects the core elements as independent variables from the three-dimensional index system of length,width and depth in turn,including the rate of administrative cases,social financing and local fiscal self-financing,and uses historical data to test the correlation of them and the balanced development level of New Urbanization(the urban-rural income gap).The results show that the expansion of government power will hinder the balanced development of New Urbanization,and the proportion of social financing will promote the balanced development of New Urbanization,and the local fiscal self-financing rate is positively related to the balanced development of New Urbanization.The empirical results supports the conclusion that the three dimensions of length,width and depth have significant effects on the development of New Urbanization,and the degree of influence is gradually decreasing.