Diversity about the Capital Financing of Rural Infrastructure in China

The shortage of construction funds and serious insufficiency of supply of rural infrastructure has greatly restricted the improvement of agricultural productivity and sustainable economic growth in Chinese rural areas. The key to solve it is capital financing of construction. This paper commented the main problems existing in capital financing of rural infrastructure construction, then it analyzed the feasibility of diversification in fund-raising and built a diversified financing system on rural infrastructure construction. Through it diversified financing means will be adopted, investment from fiscal, financial and other institutions will be greatly increased. Investors involving the state, the collective organizations and individuals will be widely mobilized to rural infrastructure areas and thus all levels of funds even foreign capital will be attracted to the construction of rural infrastructure.