Henan Province Highway Construction Financing Mechanism

The highway is an important infrastructure of regional economic development and an important material foundation for the national economy. Highway Construction is inseparable from the strong support of capital, and improvement of financing mechanism of the highway construction can provide enterprises with good financing channel. As a central province, Henan is the one of regions of country's transport development priorities.Henan highway Construction plays a pivotal role in the integrated transport system of the whole province, its development plays a strategic leading role in the changes from an economic province to an economic powerhouse province, can speed up industrialization, urbanization and agricultural modernization process and promotion of central China. Henan highway construction and development speed, large investment and the future construction funds needs several hundred billion annually, and there is a considerable shortfall in funds. Careful analysis of financing mechanisms of the construction of highway in Henan province has great practical and theoretical significance in the promotion of rapid and sustainable development of Henan highway construction, in the enhancement of economic strength and in the promotion of the central province of China.This thesis uses scene survey methods,sum up analysis, qualitative and quantitative analysis to study financing mechanisms of Henan highway building. This thesis first analyses the economic attributes of product of the highway and project financing basic theory, proposes the necessity of the establishment of pluralistic and market-oriented mechanism of highway financing as the solid theory foreshadowing for a follow-up study based on the main financing for the economic behavior of highway financing; Then, the thesis discusses the development of the highway in Henan province in detail mainly from the rapid implementation of the highway construction, the local government attaching importance to it and actively introducing measures and private capital playing the role in the building of highways such as comprehensive management. Finally, this thesis puts forward basic ideas of a perfect financing mechanism of Henan highway construction based on the comprehensive use of financing channels of the capital market, maintaining and strengthening sustainable development of the highway finance market, and improving efficiency in the use of highway funds and companies operating quality and other aspects.We must only promote market of highway and diversification of highway financing, and give full play to market allocation of highway resources, and take active innovation of financing system and technological, and strengthen risk management of highway financing and establish normal entry and exit mechanism in order to establish and maintain a fair, efficient, transparent procedures of the highway finance market. Only to optimize the overall quality of the main of highway financing and to promote the efficiency in the use of funds and capital operating quality of highway enterprises can improve its sustained financing capacity. Establishing a rational and effective financing mechanism of construction of highway in Henan province is a realistic way to make the development of financing market sustainable, and to provide constantly an endless financial support for highway construction and operation, and to make participants achieve a win-win situation in the construction of highways and to promote the healthy and rapid development of Henan highway.