Research On Conducting Business Of Shidaifutong Private Equity Investment Fund For Urbanization

According to the spirit of the report of the18th National Congress of theCommunist Party of China (CPC), the constructions of new urbanization will becomean important engine for building a moderately prosperous society. Firstly, theconstruction of new urbanization provides an important impetus to the expansion ofdomestic demand."Twelve Five-year" plan raised expanding domestic demand to thenational strategic level. New urbanization can not only stimulate investment，but alsoincrease consumer demand which is benefit for the adjustment of economic structureand transformation of the growth mode. Secondly, the construction of newurbanization provides support for accelerated industrialization. Constructions of newurbanization can spawn new industries, promote the factors of production to townsand upgrade the industrial agglomeration and structural optimization. In addition, theconstruction of new urbanization points out an important way to solve the problemsof the "three rural" issue and the dual economic structure. China’s agriculture’sdevelopment is far behind the world’s level, peasant economy severely constrains thedevelopment of agricultural modernization and intensification. New urbanization canattracted rural surplus labor to the town, which can improve the efficiency ofagricultural elements so that to improve the organization and intensification ofagriculture; and the rural population into the cities and towns can also improve thecoverage of social welfare and public services usage, alleviating the drawbacks ofurban-rural dual economic structure. Thus, the construction of new urbanization isinevitable choice in the construction of well-off society in China。Be influenced by the prudent monetary policy，the credit ability of financialinstitutes is limited. How to make the limit funds flow to the instructions ofurbanization so that to solve the problem of lack of money become an urgent problem.Jilin is an agricultural province, which economic status is at a disadvantage in the nationwide, the imperfection of financing channel and the unsoundness of financingsystem becomes the limitation of economic growth. Thus, solving the problems isimperative under the situation.The commercial banks satisfy the needs credit requirements of different eras,different levels and different companies by business innovation. The successfuloperation of the equity investment fund Shidaifutong of affordable housing forlow-income groups of Jilin branch of CCB has given the experience of forming aprivate equity investment fund under the circumstance of urbanization.On the basis of analyzing the current situation of construction of urbanizationand problems, drawing lessons from the experience foreign countries, and doingresearch on the practice of operation of the equity investment fund Shidaifutong ofaffordable housing for low-income groups, we analyze the backgrounds, the settingup and the mode of operations, summarize the problems existing in the process ofsetting up and operation, and propose our suggestions. By dong so, we confirm thepossibility of conducting the business of private equity investment, which can offersame hints on the constructions of urbanization of Jilin province.;The paper adopts the combination methods of empirical analysis and normativeanalysis.(i) By dong normative analysis, we analyze the possibility of forming theprivate investment fund and the importance to the economic instructions throughstarting from the angles of theory and practice.(ii) By dong empirical analysis, wedraw lessons from the developed countries to find the ways suitable to us throughanalyzing the financing situation of and reasons.The paper is about to solve these problems.(i) Analyze the current situations andcauses of the urbanization constructions.(ii) Summarize the advantages anddisadvantages on financing forms.(iii) Find the possibility and suitable forms ofconducting business of private equity investment fund.