Research On The Optimization Of Urban Development Fund Supervision

With the accelerating process of new urbanization in China,the demand for funds has gradually increased.Under the circumstances that traditional financing channels are restricted,the birth of urban development funds has solved the difficulty of insufficient funds for urban renewal construction to a certain extent.The appearance of Urban Development Fund gave birth to the supervision regulations.For the reason that Urban Development Fund started late in China,the regulation of it is lagging behind.This thesis uses Governance theory,along with review of regulations and interview practice,summarize and analyze the current situation of urban development fund supervision,and analyze the case of S area as a case,unveil the problems that still exists during the supervision of Urban Development Fund,and try to find proper methods,in order to promote further development of Urban Development Fund.Through interviews and review of policies,we found that because of the imperfect legal system,following problems come into being: There are problems with regulatory coordination,the lack of coordinated supervision system,that leads to almost no communication among regulators from different government apartments;The legal duty of the entities in the operation of the fund is not clear,once the investment fails,how the legal responsibility of each relevant entity is clearly assumed is still inconclusive in law;the management of fund managers is inadequate and the investor's risk awareness is insufficient;information asymmetry between investors and managers,managers have almost all the information,so once the need for recourse,investors will encounter the difficulty of proof.Taking S area as an example,this paper investigates the supervision and residents' satisfaction of urban development funds in S area through interviews and questionnaires,and summarizes the general situation and problems of urban development funds management in S area.It is found that the residents are not satisfied with the policies of the fund supervision department and the communication and coordination between them,and therequirements for fund managers and investors are relatively high.To solve these problems mentioned above,the following optimal management measures are proposed: establish a supervision system including supervision of government and self-regulation,clarify the responsibilities and coordination mechanisms of various regulatory bodies;building a clear and unified rule of law system,improve the legal responsibility of related subjects and establish regulatory information platform to achieve information sharing;strengthen the supervision of fund managers,such as the qualification review of the fund managers' qualifications,provide the investors with proper education,which will help them realize the importance of risk prevention,rights protection,and cultivate a rational investment attitude;perfect the information disclosure system,offering detailed and real information to the investors,which can solve the problems caused by asymmetric information owned by investors and managers.