Analysis Of The Demand And Supply Of Mortgage Loans For Rural Households' Land Contractual Management Rights

Chengdu is one of the urban and rural comprehensive reform pilot approved by the State Council and the reform includes rural property rights reform and its accompanying innovation in rural finance.The CPC Central Committee decision on deepening reformissued by the Chinese Communist Party and the No.1 Central Document of 2014 havemade specific provisions on farmers contracted land rights, stressing that it allowed farmers to use the contracted land rights to mortgage financing from financial institutions, and financial institutions could carry out the appropriate rural land contracting right mortgage loan and accept the required rights as collateral to ease the problem of farmers' lack of effective collateral. Chengdu has issued series of documents to begin exploring rural property mortgages, and for the first time clearly setting provisions on rural property mortgages' subject, process, debt and corresponding measures. Land contract and management right mortgage loan as an important measure to promote the transfer of rural property, has become one of the new highlights of rural property rights reform in Chengdu and its urban and rural comprehensive reform pilot. Involving land contract and management rights into modern financial system, relying on market-oriented operation, can effectively solve the collateral problem, not only expanding ways for farmers to access to credit, but also attracting more funds to invest in rural areas, activating rural financial market, greatly increasing farmers' wealth, and promoting agricultural production to specialization and modernization.Through farmer field surveys and interviews with financial institutions, this paper has studied the implementation of land contract and management right mortgage loan in Chengdu from the perspectives of farmers and financial institutions,analyzing the current financing situation of farmers, their borrowing willingness as well as financial institutions' characteristics, obstruction and so on in the implementation of the land contract and management rights mortgage loans, and so on.The main conclusions of this study are as follows:(1) In Chengdu, rural land ownership registration has ended and right certification has been largely completed. In survey areas of Pengzhou, Pi County and Chongzhou, the transferring land, generally contracted, was mainly used for cultivation, and the land transfer was active, which is conducive to the contracted land management rights mortgages.(2) The land transfer has led to economies of scale, increasing the income of farmers. Compared 2010 and 2014, it was found that the number of choosing land transfer as the main source of household income increased by about 4%, indicating that the land revenue function has been greatly improved. Farmers generally hold cash or deposit in banks for more money. But in addition to traditional deposit services, farmers' choice of financial products and services were still relatively narrow range. Farmers were not involved in a wide range of financial investments, and their financial literacy has yet to be continued to improve.(3)Household borrowing was mainly through relatives and friends, and the borrowing willingness was relatively strong, but actually only a small number of farmers obtained loans from banks or other sources. Some farmers believe that the land contract and management right mortgage loan would have a greater impact on their family, but most were willing to try such a mortgage.(4) Currently the supply ofrural right mortgage was insufficient and the reason was mainly the imperfect systems of asset valuation, risk guarantees, collateral disposal and so on.