Existing Problem s in Financial Support for New Urbanization and Recommendations

Songtao LIU，Junfan WANG，Yunyang ZENG，Liqiong LIN

College of Economics，Fujian Agriculture and Forestry University，Fuzhou 350002，China

1 Definition of related concepts

1.1 Concept of urbanizationUrbanization is a comprehensive dynamic process of realizing city as major part of a state in the process of economic，political and social development［1］.It is a population shift from rural to urban areas，the gradual increase in the proportion of people living in urban areas，and the ways in which each society adapts to the change.It is predominantly the process by which towns and cities are formed and become larger as more people begin living and working in central areas.In a broader sense，urbanization not only includes the process of rural areas changing to towns，but also includes the process of further development and improvement of city itself［1］.

1.2 Characteristics of urbanizationUrbanization is a complex and long process of changes of social history.From specific types，urbanization mainly shows following characteristics：

Firstly，change of population status characteristics.Urbanization is people-oriented urbanization.Its fundamental characteristic is change of rural residents becoming urban residents，and agricultural household registration to non-agricultural household registration.

Secondly，change of life style.With advance of urbanization，rural residents gradually flow to urban areas，and their traditional life style will change accordingly.They will gradually accept urban life style and accordingly integrate in to modern cities.

Thirdly，changes of related industrial structure.Change of industrial structure is a core part of urbanization.With advance of urbanization，original industry of rural areas will change accordingly，and industrial structure will be optimized and upgraded to better suit urban development concept［2］.

Fourthly，change of regional space component.With advance of urbanization，rural land area will become smaller and smaller and urban area will constantly expand.With successive rise of numerous cities and towns，there will be more and more urban belts，which will evolve into urban agglomeration［2］.

1.3 Concept of new urbanizationThe new urbanization refers to building new ecological living cities and towns through taking people-oriented process as core part and comprehensively considering living and cultural development factors in the meantime of promoting economic development and related industrial transformation and upgrade［3］.Compared with traditional urbanization，new urbanization focuses on environmental protection and efficiency，changes the traditional urbanization that develops economy at the sacrifice of environment and excessive consumption of resources，focuses on development quality，makes effort to break constraint of urban and rural dual system，and improves people's quality at the same time of increasing their income［3］.

2 Difference between new urbanization and traditional urbanization

2.1 Development orientation of new urbanization is more definite and clearPeople-oriented is the definite orientation of new urbanization process.It stresses overall consideration of all interested parties，to avoid uncoordinated development，high environmental pollution，and not in place of management in the process of traditional urbanization.

2.2 Development methods of new urbanization are rich and variedNew urbanization focuses on imbalance situation of regional development，changes one-sided and universal development mode in the past，and attaches importance to diversified development in accordance with local actual situations.

当前在乡村振兴实践中，已经呈现出军民融合深度发展态势：一是出现了凭借地理空间优势而产生的军民融合特色小镇；二是军工装备服务于乡村振兴而产生了远洋渔场（海洋工程装备）；三是科技成果双向转移转化而出现的融合，如卫星遥感技术向农业灾害预防技术转化与利用、智慧农业改造边疆军团农副业生产等；四是军地应急应战一体化向农业生产保障领域的延伸而产生的融合，如林业消防及应急合作等；五是军转干部及退伍军人转移到农垦集团服务乡村振兴而发生的融合，如改制中的黑龙江农垦集团。

2.3 New urbanization pays more attention to development qualityNew urbanization pays more attention to moderate control of urban space and size，stresses improvement in overall de-velopment quality and suitable living degree of cities，and attaches importance to optimization of overall urban environment，to put forth effort in building ecological，livable and cultural cities and towns.

2.4 New urbanization considers development of surrounding areasIn the development of new urbanization，it not only considers development of central cities and towns，but also considers development of surrounding areas.New urbanization makes effort to tackle problem of suburban development through promoting economic development of surrounding areas and improving overall regional development level and living quality of residents.

2.5 New urbanization focuses on balanced development

New urbanization stresses balanced development of traditional big cities and new small cities.Besides，it gradually explores common development of big and small cities，to avoid falling into the mire of unbalanced regional development.

3 Analysis on current situations of new urbanization and financial support

As a core sector of national economic and social operation system，finance plays an effective guidance and support role in the process of new urbanization development.It is favorable for advance of large scale development of new urbanization and quality improvement.However，according to current situations of new urbanization development in China，there are certain problems in the process of financial support for new urbanization.

3.1 Difficulty in infrastructure financing in the process of new urbanizationAs we all know，infrastructure is hardware and foundation of urban development.It is also like this in the development of new urbanization.According to related statistical data，China's new urbanization rate will rise from 32%to 50%in 2010-2020，and about 200 million rural residents will migrate to cities［4］.In this process，there will be more infrastructures，which need huge local financial support.However，at present，local financial support for construction of infrastructure for new urbanization is not in place.

Firstly，local finance fails to satisfy fund demands for infrastructure construction of new urbanization.In the context of existing system of tax allocation，local finance is insufficient to support new urbanization.According to related statistics，local finance supports nearly 70%population，but the revenue budget is below a half of the national proportion.Such shortage of financial funds will directly lead to local finance failure to provide effective financial support for new urbanization［4］.

3.2 Lack of funds for small and medium sized enterprises in the process of new urbanizationAccording to development experience of urbanization in all countries，small and medium sized enterprises play an indispensible role in urbanization.In China's new urbanization，small and medium sized enterprises assume important responsibilities of driving local economic development，increasing local resource utilization ratio，strengthening local scientific and technological innovation ability，and solving problem of employment of local labor.However，China's small and medium sized enterprises face financing difficulty all the time.These small and medium sized enterprises have difficulty in obtaining loans from regular financial institutions，and have to select private financing channels，which will increase financing cost greatly；besides，external financing channels of these small and medium sized enterprises are relatively narrow and have to depend largely on internal financing［5］.

3.3 Narrow scope of financial services in the process of new urbanizationIn the process of new urbanization，due to numerous people flowing from rural are as to urban are as and vigorous development of secondary and tertiary industries，these will increase demands for financial services.However，there shows obvious problem of narrow financial service scope in the process of new urbanization development.

Firstly，policy financial institution services are insufficient.Policy financial institutions play the role of passing on state policies and supplementing construction funds in the development of new urbanization.However，due to disturbance of historical factor and actual factor，policy financial institutions with agricultural development bank as representative always have difficulty of insufficient funds.In addition，there is also the problem of narrow site coverage scope and single business category，so they are not able to suit demands of new urbanization development［5］.

Secondly，informal finance lacks guarantee of legal approval.In legal scope，developing informal finance is favorable for covering blind spot of regular finance and favorable for promoting new urbanization construction.Nevertheless，in actual situation，since informal finance of China drifts away from national legal supervision system and its development is complex and chaotic，it leads to weak resistance ability，easy occurrence of related financial risk，let alone supporting new urbanization construction［5］.

3.4 Uneven financial support for new urbanizationFrom supporting degree of finance for different industries in the process of new urbanization，it can be clearly seen that there is certain deviation in support effort，which can be reflected in loan amount.Specifically，from the entire industry category，current financial supports focus on secondary industry，especially manufacturing industry，which is not favorable for China's industrial upgrade and transformation.

4 Relevant policy recommendations for financial support for new urbanization

4.1 Implementing diversified infrastructure financing modes

In view of difficulty of local finance in completely solving infrastructure financing in new urbanization construction，China may learn foreign related experience in the new urbanization process.For example，it is recommended to moderately popularize new financing methods such as Building-Operation-Transfer（BOT）mode，Asset-Backed Securitization（ABS），and Public-Private Partnership（PPP）.Furthermore，local government may solve the difficulty of financing in issuing local infrastructure securities.

4.2 Solving financing difficulty of small and medium sized enterprises through many channelsIn view of financing difficulty of small and medium sized enterprises in the process of new urbanization，firstly，Chinese government should strengthen financial institutions through financial reform，especially loan willingness of small and medium sized financial institutions to small and medium sized enterprises.Specifically，government should make adjustment and change in operation policy，fiscal and taxation system，and laws and regulations，and issue relevant incentive mechanism，to strengthen ability of small and medium sized financial institutions to participate in financing business of small and medium sized enterprises，and accordingly solving the financing difficulty of small and medium sized enterprises.Secondly，Chinese government can moderately revise related regulations to reduce financing threshold through developing and improving stock share market and corporate bonds，and encourage small and medium sized enterprises to make external financing，so as to transform current situation of small and medium sized enterprises depending excessively on internal financing.

4.3 Strengthening service level and expanding service scope of financial institutionsIn view of current financial service problems in the process of new urbanization，such as too narrow service scope and relatively low service level，Chinese government should actively guide financial institutions to expand their service scope and strengthen service quality through issuing related policies.For example，government can require financial institutions to expand service fields and improve service quality through window guidance and administrative regulations.Besides，financial institutions should also actively expand service field and enhance service quality，to integrate into the tide of new urbanization construction in positive attitude.

4.4 Changing the situation of uneven industry of financial supportNew urbanization attaches greater importance to coordinated development of different industries.Therefore，it is required to transform current situation of deviation in financial support for different industries.It is recommended to encourage financial institutions to support development of basic industries and modern service industries.

Firstly，it is recommended to strengthen financial support for agricultural industrialization.Agricultural industrialization is future trend of China's agricultural development.Financial institutions incline towards agricultural industrialized enterprises in daily operation，and make up for shortage of agricultural industrialized enterprises in agricultural production，material transportation，and product sales through financial support and scientific and technological services，so as to drive agricultural industrialized development and promote overall progress of agriculture.

Secondly，the tertiary industry features high marginal benefit，low resource consumption，and rich knowledge content.However，at the early stage of industrial development，fund demand is huge.Therefore，financial institutions can positively support development of tertiary industry through granting credit to enterprises.This not only makes financial institutions obtain steady loan interests，but also promotes construction of modern service system in the construction of new urbanization.

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