Research On The Pricing Of China’s Urban Land Asset Securitization

The existing land institution provides an institutional basis for the land rational allocation and efficient use of land resources. However, faced with the changes in the new situation, the current system of land use demonstrate some problems, just as the difficulties of financing, risk control, land mobility etc., while land securitization can provide an idea to solve these problems. As a means of financing, land securitization can broaden the financing channels of the land reserve development, reduce the risk of loans in the banking, consummate the urban land system and enhance the ability of land regulation of government. Therefore, land asset securitization is proposed in this dissertation and attempt to operate land securitization in order to solve its financing and related issues. And then this dissertation builds the land securities pricing models on the basis of financial derivatives pricing methods to determine the appropriate price for the land securities.This dissertation starts with the study of the characteristics of land asset securitization, and then analyses what type of land is suitable for the land asset securitization. Furthermore, the needed conditions of land securitization are pointed out. Combined with China’s land market situation and land policy, this dissertation will find out a suitable land securitization mode which is adapted to the land policy of China. However, a reasonable price for the land asset securitization is essential for the smooth implementation of the land securitization, and how to build a pricing model,which combine with the specific land characteristics and the securitization model,become a problem that needs addressing. This dissertation construct the land securitization pricing model from three perspectives, apply for the intrinsic value of the subject assets, securities implied options and the repayment ahead of time. According to the characteristics of the three pricing method and the required conditions, combine with specific characteristics of land and the securitization model, the appropriate pricing model should be select to determine the price of land securities. In order to verify the effectiveness of the proposed research, this dissertation based on the case study of Guangzhou Baiyun commercial and residential land development projects, design a land asset securitization mode, which is adapt to the characteristics of the project, and select the appropriate pricing model to determine the price of land securities.