Liyining: China should set up Utility investment Fund

By the Ministry of Finance and the NDRC as a promoter, invest the appropriate financial resources to attract institutional investors to participate, and eventually to public utility development bonds "Caixin network" (intern reporter Rang) "China in the process of urbanization, public utility investment funds can be set up to solve the capital shortage of urban public utility construction."　　"At the 2010 China economist Annual Forum and the China Economic Theory Innovation Awards ceremony, economist, Peking University, Guanghua School of Management, honorary Dean Liyining so suggested." He suggested that the biggest problem in promoting urbanization is to raise funds for urban construction.　　Urbanization needs a large amount of capital investment, not only by financial, not by market, in the future, should be the financial, private capital, public utility investment funds to form a "troika", together to stimulate China's urbanization process. Liyining suggested that, first of all, the Ministry of Finance and the Development and Reform Commission as the initiator of China's Public Utility investment Fund, the appropriate financial funds as a seed fund, and secondly, to attract institutional investors to participate in the initial establishment of the framework of China's Public Utility investment fund.　　The fund then issues Chinese utility development bonds for private enterprises and private fund-raising. "If the fund is well managed, it can generally achieve a 8% per cent return," he said. And this rate of return, the attraction of private capital is very big.　　He pointed out that at present, in the urban public service areas, such as compulsory education, public health, environmental governance, security housing, and so on, mainly rely on finance, by the government protection, and such as commercial facilities, high-grade residential, private universities, etc., are financed by the market and provide. But the construction of public utilities cannot depend entirely on finance. After all, the power of finance is limited. At the same time, there are many problems in land finance and local government debt under the current system.　　In order to promote urbanization, we must look for market-oriented investment channels in addition to finance. and the establishment of public utility investment funds is a feasible way.　　This is because the general cycle of urban public utilities is relatively long, the investment is relatively large, for-profit enterprises, either unwilling to invest a lot of money, or have no capacity to invest, and the public Utility Investment fund can solve the problem. Liyining that the current rate of urbanization in China is 46.6%, which is too low. If the annual increase of 1%, 30 years later, China's urbanization rate will reach 76%. Assuming that the total population of China is 1.5 billion, there will be more than 1.1 billion people living in the city and less than 400 million people living in the countryside.