The necessity and feasibility study for private capital participation in urban redevelopment

Abstract

Urban redevelopment is important and meaningful to promote city ecological environment and economic development. However it accounts commonly huge investment and the current finance mainly relies on fiscal investment, bank debt, and bond issued by government financing platform. And the generous government debts cause great fiscal pressure. The article explores whether the private capital can be solution to urban redevelopment financing problem. Combined with the existing private capital development and urban redevelopment analysis, it discusses the necessity of private capital to participate in urban redevelopment. Based on the existing Chinese policies, social and economic factors,it analyzes the feasibility of private capital participation in urban redevelopment, provides political suggestions for government to expand urban redevelopment financing ways and also offers reference decision for private capital to participate in urban redevelopment. © 2014 Springer-Verlag Berlin Heidelberg.