A Study On The Securitization Of China Urban Land

The Urban Land System of buying and reserving has been set up in China since 1980s last century. The main purpose of establishing the system is to resolve much trouble of land management, to promote use urban land intensively, to protect farmer arable land and to enliven stock land of many enterprises. It has been proved that the system can provide an effective mode for regulating land resource. The system mainly can be used in helping authorities control, deploy land resources and optimize land management model, the system can also be used in making the order of the land market transactions standard. Through this system, authorities can monopoly primary market of land, then intervene secondary land market effectively and manage urban land. But nowadays, this innovate institution is severely affected by many constraints, especially the financing channel. It is necessary to research how to operate funds of Urban Land System of buying and reserving and to settle the funds.After summarizing domestic and abroad related research of land securities and combining domestic actuality, this thesis analyzes the function and the feasibility of the securitization of China urban land firstly. The securitization of China urban land, as a low-cost and high-yield financing channel, can optimize the structure of assets and liabilities of commercial banks, and can also reduce operational risk of banks. The arrangement of China urban land can yield stable and predictable cash flow. Local government and Urban Land System of buying and reserving, as deputy of urban land, are creditable. The present political and economic environment of our country provides appropriate circumstance. Overall, the securitization of our country's urban land is feasible.The main mode of the securitization of urban land includes land bond, land stock, land trust and land fund. Land bond, as a low-cost and flexible pattern, is suitable for large-scale and short-period financing projects, especially for those projects which bank loans cannot match the required funds of Urban Land System of buying and reserving. Land trust, as a low-cost and flexible interest rates way, is favorable for those projects of developing city subdivision. Urban land fund is feasible for those projects which are large-scale, high uncertain and long-period. This thesis analyzes the investment value of securities in the case of land bond. In the end, this article comes to the conclusion, after credit enhancement, the risk of urban land bond is close to national bond, land securities is a kind of low risk and stable profit product, it is attractive to the majority of investors.