The Research On Developmental Financial Support For China’s Urbanization

Urbanization is not only an inevitable trend to realize our nation’s social and economic modernization, but also is an important way to expand domestic demand, optimize the economic structure and realize the transformation of the economic growth pattern at present stage. The expansion of domestic demand and economy’s steady and rapid development are important themes of the12th five-year plan; meanwhile, consumer demand’s expansion and investment structure’s optimization are the main contents of domestic demand’s expansion. Moreover, urbanization’s acceleration can promote consumer demand’s expansion and investment structure’s optimization.Development finance is a good path to effectively overcome the market failure and government failure. After the Second World War, in the developed countries, development finance played an important role in resolving the medium and small enterprises’ financing problem, backward areas’ economic development and urban’s construction etc. In addition, benefited form the sound financial system, developed countries can raise money by issuing a large number of municipal bonds. In this way, it can effectively resolve the financing problem in the urbanization and urban construction’s process.However, for China whose economy is in the transformation stage, both its financial system and credit system are imperfect, meanwhile the conditions for issuing local government bonds especially the municipal bonds are immature. Moreover, even if our country municipal bonds are successfully issued and operated, urban construction is prone to government failure. On the other hand, because of the long-term and high-risk’s nature for urban construction projects, commercial finance rarely participates in this aspect, which also increases financing difficulties in the urbanization process.Just due to the special background of China’s urbanization, development finance becomes an effective path which can be adaptable to its urbanization characteristics and strongly support the urbanization’s development. On the basis of mirroring the domestic and foreign scholars’s theories and development fiance’s practices, this article mainly studies how development finance support China’s urbanization. In this way, this article can broaden and deepen development finance’s study fields, and enrich its theory’s connotation. On the other hand, the new exploration for urbanization’s supporting path also can enrich urbanization theory, meanwhile it provides a new idea for urbanization development.