Abstract:Land reserve is new system of land administration in our country. After study on the concept, function, fund risk and financing channel of land reserve, the author think that the concept of land reserve should be improved and the commonweal, entirety and universality of land reserve should be outstand in the concept and public welfare should be one of the most important functions.
In 1996, Shanghai government established the first institution of land-reserve of our country and firstly practiced land-reserve in the nation. After more than ten years’ practice, the land-reserve system appears many problems while acquired achievement. Firstly, the land primary market doesn’t be monopolized completely. Secondly, we neglected the function to make commonweal and macro-control of land reserve system. Thirdly, it would bring about financial risk that the money devoted to land reserve almost come from bank. Fourthly, financing channel should be broadened because the scale of land reserve is expanding and the cost is enhancing. Fifthly, it becomes more difficult to buy land used for construction because there is no mandatory of land reserve system in our city. In order to resolve the third and fourth problems, to broaden the channel of financing is necessary. And fund trust, asset securitization of land, and PPP can be adopted. Fund trust applies to projects of small scale，such as purchasing workshop and school building. Asset securitization of land applies to projects of large scale, such as expropriation of large piece of land in rural area. PPP applies to small or medium projects, such as reconstruction of old area in city.
On the analysis above, the author concluded that we should introduce PPP into land reserve and encourage enterprise to build cheap-renting house. Three parts, the government, enterprise and public will benefit from this mode. The public can acquire common welfare which is one of the most important functions of land reserve. The government can put the housing-ensuring policy of our country into effect. And the enterprise can obtain steady income. The author thought this mode should be popularized.
Keywords：Land reserve，Land bank，Land supply，Asset securitization，Public-private partnerships