Study On The Investment And Financing Problems And Countermeasures Of Local Government In The Process Of Urbanization

For over 30 years of reforming and opening-up, with the rapid development of national economy, the process of urbanization in China has entered a new historical stage, in 2012, our country town resident population increased by more than 500 million people. In 2012, China’s urbanization rate has increased to more than 51%. After the “18th CPC National Congress”, urbanization has become the key of the national development strategy, the urbanization is more than a driver of national economic development, is also the inevitable requirement of the new stage of the development of national economy. In December 2013, the central working conference of urbanization points out that urbanization is an important way to solve the problem of agriculture, countryside and farmers, is a powerful support, promote balanced development among regions, is also one of the important gripper expanding domestic demand and promote industrial upgrading. It also has important realistic significance and far-reaching historical significance while building a well-off society in an all-round way and accelerating socialist modernization.However, the current shortage of funds is still the "bottleneck" restricting the urbanization. The difficulty of financing is the most prominent problem. Judging from Nanchang city, according to the Nanchang city urbanization development goals, the urbanization rate will reach 80% in 2020. This means that at least 100000 farmers will transform into citizens every year. The increase capital investment demand is the key to speed up the urbanization construction. Suppose that the cost of each farmer becomes a city resident is 100000 yuan, Nanchang governments need to invest 10 billion yuan, roughly accumulated 60 billion yuan will be invested in. Such a huge capital requirements funded only by fiscal will be a drop in the ocean. In order to assure the healthy and sustainable development of urbanization construction process, we must solve financing problems during the process of urbanization.This paper chooses Nanchang as an example, analysizes the urbanization process and problems of the traditional financing model of Nanchang in present situation. And base on the experience of domestic and foreign urbanization, we try to figure out how to effectively solve the financing problems during Nanchang urbanization process in order to resolve the problem of excess liquidity and capital bottleneck of urbanization.This paper draws the conclusion after studying: It’s a long-term systematic project topromote urbanization process ofNanchang and it needs to expand the capital investmentconstantly. In addition to rely on the financial investment and the way of traditional financial institutions loans, combined with Nanchang actual, we should also learn from the experience of building urbanization domestic and overseas andconstantly explore.Under the framework of policy and law, some innovative and beneficialfinancing channels, such as the PPP financing model, should be taken into application. Government of Nanchang should guide social capital to participate in the construction of urbanization,so as to format the multi-channel investment and financing system which could provide a stable and sustainable funding for urbanization development of Nanchang.