Research On The Financing Of Chongqing Citizen Nutrition And Aging Institutions

Since the 21^stcentury,China has officially become“Aging Society”;the social practice for over two decades has proven that,the aging population issues have fundamentally influenced China’s economy,social construction,and cultural development;its irreversible tendency,nonnegligible challenges,and subsequently unmissable opportunities have been the consensus of all sectors of the society.Since entering a new era,the Party Central Committee and the the State Council have highlighted the aging population issues and have introduced a series of favorable policies to boost the development of elderly care industry and promote the development of various elderly care institutions.This paper overviews China’s policies for actively responding to aging population as well as the theories of corporate financing models,and studies effective financing status of Chongqing’s local private elderly care institutions by literature research,empirical study,and case study.It finds that the high cost and accessibility of financing are universal problems for these institutions and therefore restrain their further development.As concluded in this study,the financing needs of such institutions are mainly in three areas:facility constructions,reforms,and expansions,and outstanding obstacles of their structural contradictions exist in five aspects:lack of internal financing,accessibility of bank financing,difficulty of equity financing,high interest rates of private lending,and insufficient governmental supports.This paper argues that,to ease the financing issues of private elderly care institutions,three aspects of policy incentives should be implemented:first,to further develop the relevant policy safeguard and financing system in order to stimulate the growth of this market;second,to diversify the financing channels for the industry such as bank finance,pension bonds,PPP,pension funds,etc.;third,to encourage the support from social capital to elderly care industry and to explore the new alternatives of PPP in this industry such as“built by public and operated by private”.As aging population issues are vital for the national economy and the financing issues are the key factor of the development of elderly care industry,the relevant study shall be further widened and deepened in the future;with the improvement of national policy system for aging population care and China’s“dual circulation”development pattern in the new era,the development of private elderly care institutions and their financing environment would be materially improved,and the corresponding new issues are worth further study as well.