2008 China Macroeconomic Policy and Regulation of Urban Real Estate Report - Financial ... Joining Law

 2008 China Macroeconomic Policy and Regulation of Urban Real Estate Report Joining lawyer   Chapter domestic economic context of global economic trends   Section 2008 Overview of the domestic economic trends   the first three quarters of 2007, GDP grew 11.5%, excessive investment growth in economic operations, the trade surplus is too large, too many issues outstanding credit, inflationary pressures increased, rising asset prices, international economic and financial uncertainty increases, the potential increased risk of the domestic economy. Most economists believe that the U.S. consumer slowdown on China's real economy is gradually spread throughout the year the Chinese economy growth this year will reach the top of the current round of economic growth, economic growth will slow next year. Of course, there are economists that the effective macro-control as the domestic economy, domestic economy can still maintain a sound and rapid growth. <> <> The author believes that the views of these economists have a grain of truth, but by the third quarter economic performance data do not necessarily reflect the situation of the domestic economy in 2008, as the end of 2006, large Some economists believe that economic data according to the third quarter, the domestic macro-economic regulation and control have been achieved, but the trend of economic development in 2007 was against the policy line that .<><> my opinion, in January 2008, 1-5 by the following factors of the domestic economy will rebound in growth :<><> First, in order to improve the real estate market supply and demand structure, as the Opinions of family housing difficulties, will play a role in .<><> II engine, the central bank to tighten monetary policy in 2007 narrowed the financial institutions, the spread between deposit and lending rates increase, reducing the profitability of financial institutions, keep in deposit reserve ratio increase, the central bank stepped up open market operations, and the recovery of a large number of special treasury bonds issued in the special economic environment of liquidity, in order to expand the earnings base, the first half of 2008, financial institutions, credit will be enlarged and accelerated scale. With the expansion of the credit scale, domestic investment growth will be sustainable in a certain period .<><> Third, despite the global credit growth due to the U.S. subprime financial crisis, but the phenomenon will gradually crunch, high housing prices bubble burst will slow global economic growth, but energy prices, especially international oil prices in the first half of 2008 and will not be substantially reduced, back to the 2005 price level. In the period of higher energy prices, international markets will continue to need China to provide cheap products to resist inflationary pressures before the recession in the first half .2008, export growth to some extent still is sustainable .<><> Fourth, in order to achieve economic development pattern, the state support industry incentives to promote investment in some industries continue to grow at the same time, corporate profits increased, self-financing affluent, the demand for business investment in a vigorous stage .<><> five, by the concept of good economic impact of the Olympic Games, the domestic economy there are still some growth is expected, the increase will strengthen the investment behavior .<><> Although domestic economic growth in 2008 still exist in the first half rebound, but the trend of global economic development, this economic growth rebound is likely to affect economic stability and development, increasing excess capacity, incentives for the economic crisis triggered by the global economic crisis or .<><> II will inevitably <> <> August 2007, the U.S. subprime mortgage crisis triggered by the global financial turmoil, most economists believe that China, in a completely open capital account in China before the economy does not severely affected, response to this widespread view, the author pointed out that the global financial crisis because the United States from the appearance point of view increase in subprime loans due to credit defaults, but its real root causes are imbalances in the global allocation of resources, developed countries led to the outflow of capital and technology developed in order to sustain economic development of junk currency, developed countries led to excess liquidity, leading to asset price unrealistically high, the brink of a bubble, while the developing countries of the developed countries led to the inflow of technology and capital to improve production efficiency, resulting in the spillover of excess capacity, a strong surge in external demand caused by foreign exchange reserves, the formation of passive liquidity, asset prices have also been pushed to the bubble state. these factors result in super-excess global liquidity, the world's financial markets are distorted price system, central banks monetary policy loses its elasticity. subprime loan crisis of the global financial turmoil is only the beginning of a worldwide economic crisis, rather than end .<><> excess liquidity in the global economic environment, the super liquidity in global financial markets led to excessive lead to prosperity, with the wealth effect may increase, the redistribution of the wealth effect caused by the effect of strengthening the distribution of wealth serious polarization, while the wealth effect leading to global wealth, a Global recession highlights the spending power, the world of the super-liquidity has pushed up the prices of assets at risk adjusted asset prices caused by the revaluation of the market is expected to lead the market value of the return, depreciation of asset prices is facing shrinking, the U.S. subprime crisis is The economic environment in the third quarter occurred in .2007, the world financial institutions affected by the subprime crisis was the revaluation of assets inventory, Citibank, Merrill Lynch, HSBC and other financial and securities institutions in western countries, asset price re- After the huge shortage estimated by Western financial market turmoil intensified. With the fourth quarter of 2007, a further revaluation of inventory shortage, 2008, liquidity in global financial markets will become increasingly scarce, the financial market tightening will lead to the spontaneous flow of the real economy scarcity, and ultimately lead to recession in the world economy overall, the global economy will fall into the abyss .<><> economic crisis after the subprime crisis, central banks had agreed to save the fourth quarter, the market is relatively stable from the surface, including the domestic economy scientists, including the generally optimistic view of the world economic circles: Although generally considered signs of slowing economic growth in developed countries, the World Economic fundamentals remain good, economic growth will remain the situation .<><> I believe that This is a misunderstanding: one, five years, global economic growth and easing the financial environment has in financial institutions outside the system created a lot of hot money capital mobility (international aspects petrodollars, hedge funds, etc.; country there are real estate, stocks of coal and hot money speculation, etc.), these extremely hot money liquidity beyond the rule of the radius of the central banks, monetary policy can do nothing of its global free speculative, hot money can push up asset prices beyond the control of non-central banks, countries In addition to prick asset price bubbles, central banks, but could not find a better treatment methods. Second, the subprime mortgage financial crisis led to national financial institutions have shortage of liquidity within the system, but the behavior of central banks and from the other hand, the relief entered the mobile nature, relief increased mobility will not only push up asset prices, but also push up global inflation. Third, to provide the world's energy production and consumption of resources and production of raw materials pricing States has the world's resources, limited resources Super liquidity in the world will continue to have driven the price effect, pushing up the cost of production and consumption, contributing to global cost-based inflation. high liquidity, high inflation and high asset prices, in the , global consumption will fall into recession. As consumer recession, asset price bubbles burst simultaneously. to save the national housing slump, and enhance economic stability, the Fed will further say in the exercise of the currency, the dollar devaluation strategy although to some extent can alleviate the speed of U.S. economic recession, the dollar devaluation strategy will also be a disaster for the world. U.S. dollar, U.S. dollar foreign currency reserve assets value, in order to stabilize their currency, they can only convert foreign currency reserve assets, the dollar sell-off of assets outside the reserve will result in the world financial markets into turmoil, the economic fundamentals are bullish .<><> does not mean that 2008 is also optimistic about the deterioration of the global economy is not good to national economists, the subjective desire to improve. I believe that , 2008, the global economic crisis, or will be inevitable. to the development of world economic integration is concerned, not so much a global economic crisis erupted in 2008, rather, in 2008, world economic growth has entered a new round of global resource adjustment phase transition process of the domestic economy .<><> III <> <> In 2008, the global resource prices continue to trend higher, slower growth in developed economies, international trade friction and promotion, international capital mobility increased, more passive, such as domestic financial markets open, will accelerate the proliferation of domestic liquidity, asset prices will be pushed to the peak value, the same time, subject to seasonal consumption, the domestic inflation will become malignant. into the second quarter of 2008, domestic consumption will continue to weaken, as the global economic downturn, the crisis highlights the domestic excess capacity, financial institutions, easing bad credit behavior began to accelerate behind rise in global financial markets, the credit liquidity crunch, the financial crisis deepened the economic crisis of the world economic context, the domestic asset prices will suffer from the revaluation of asset price bubbles will be automatically broken, excess capacity and assets two-way interaction between price bubble crisis, domestic economic growth turning point. Of course, there is a factor likely to accelerate ahead of the domestic economy in turmoil, that is, the pressure in the West, if the domestic capital market ahead of the passive open, it may lead to ahead of international hot money looted domestic financial markets, the Chinese version of the Asian financial crisis or will show .<><> Chapter differentiated macro-economic control policy <> <> Section 2007 domestic currency policy-oriented review <> <> Since the current round of economic growth, although the state in industrial policy and fiscal policy adjustments made a rigid, but so far the transformation of economic growth did not materialize. domestic mainstream economics Despite the extensive family pointed out all the consequences of economic growth, but how to change the mode of economic growth, but always able to make a positive economic effect of the early advocates .<><> the end of 2005 I had written that sustained increases in domestic investment, economic showing extensive growth is the source of funds in the market price is too low, for which, the author proposed to be rigid in the formulation of industrial policy and fiscal policy adjustments the demand for investment, the proposed lending interest rates, increased market cost of capital , extensive economic growth inhibition .2006 April 28, the central bank adopted this proposal, but small interest rate increase, only raised the benchmark lending rate by 27 basis points, the demand for money does not restrain the effectiveness of .2006 the scale of the first half of the rapid expansion of domestic credit line, the central bank lending behavior of interest rates experienced scholars criticized the domestic economy, domestic economic circles that the expansion of the size of credit spreads due to increased deposits and loans to support the massive expansion of domestic financial institutions credit credit needs. Since then, the mainstream view among economists that this error caused by the central bank deposit and loan spreads narrowed on the benchmark deposit and lending interest rate adjusted for the difference. the idea of the economics profession in the conduct of monetary policy implementation were obtained, but the actual effect of the opposite , one to three quarters of 2007, expanding the size of the domestic line of credit increased. In my opinion, the mainstream circles of economic growth led to false claims of monetary policy is one of the reasons fall into the trap inelastic .<><> ; economic circles, the error lies in the extensive period of rapid economic growth, ignoring the monetary fund and the market price of the relationship between investment demand. To promote economic growth pattern, in addition to the industrial development of rigid policies and fiscal policy, monetary policy changes in the mode of economic growth is the foundation of the regulatory role to play, and credit funds directly affect the price of extensive expansion of investment demand. When the price of loanable funds and the extensive investment demand close to the expected return, the extensive investment demand will be curbed, When the extensive demand for investment funds is expected to yield higher than the price of credit, extensive investment demand will be inspired. relevant statistical data show that since 2006, the domestic industrial enterprises above designated size was higher than average profit margin of 30% growth rate, some even higher than 70% of enterprises. In this market environment, the mainstream economists suggested deposit and loan spreads narrowed, to some extent reduced the lending rates relative to increase in demand for the extensive investment incentives played a 2007 1 -9 month rate of increase of domestic investment is proof. mainstream economists false claims have led to structural imbalances in the domestic economy continued to deepen .<><> level since 2007, the central bank repeatedly raise the statutory deposit reserve ratio and add big open market operation, during which use of price leverage to raise interest rates five times inflation pressures, in order to improve the flexibility of monetary policy, the state also issued special treasury bonds, central bank also recently launched a special renminbi deposits in an attempt to tighten the liquidity of the increasingly rampant . While the central bank of these practices is beyond reproach, but the actual performance, these control measures are the existence of reverse incentives: First, open market operations, special issue of the RMB deposits, which are all costs of monetary policy, and these costs eventually become a new maturity epigenetic fluidity, became a source of credit expansion. In particular, the final conversion for the sovereign bond funds, and sovereign wealth funds will increase the mobility of income, unless the sovereign funds in the international financial market turbulence in the unproductive . Second, to date, in 2007 the central bank has been raising interest rates five times, but the interest rate increase is too small, the tightening of liquidity has not played around with making the contrary, the deposit and loan spreads narrowed, renvoi increased demand for financial institutions to credit expansion. Third, the central bank tightened liquidity focus on the one hand, frequent use of reserve ratio and other monetary policy tools, but the other countries, but to encourage a new round of financial institutions within the IPO or issue of financial bonds, securities and credit markets, not only among such funds can not tighten the liquidity cycle, on the contrary gave birth to the spread of liquidity, monetary policy will inevitably be too out of control in the flow of super .<><> surplus, inflation and strengthen the economic environment, lack of consumer demand, monetary policy failure, which means out of control credit, which means expansion of investment demand, which means excess capacity continues to increase, meaning that continue to rely on foreign demand increased, meaning the trade surplus continued to increase It also means continuing excess liquidity. In this and continual circulation of the cycle, the economic growth mode transformation can not be achieved. more dangerous, with the overheated economy, with inflation intensified, with the trade friction upgrade highlights overcapacity, domestic asset prices might burst at any time, this reverse circulation of domestic economic growth will be interrupted at any time the chain of domestic economic growth, trapped in the collapse of the domestic economic situation .<><> section II, the optimal choice of monetary policy tools <> <> Over the years, low interest rates made credit market price is very cheap capital. cheap money, cheap resources, cheap labor, a combination of these low-cost production factors attract not only a large number of international capital and technology but also on the extensive development of the domestic economy model, China has become the world economy on the foundry industry chain, the domestic economy has always move forward along the following cycle development model: credit expansion - investment growth - productivity Surplus - enhanced external demand - increased liquidity - more than the domestic credit expansion .<><> model of economic development shows that abnormal growth of the domestic economy is the source of credit expansion, not to excess liquidity. But excess liquidity the credit expansion, the result of excess investment. However, economic growth in 2004, since overheating, monetary policy makers do not observe the point .2004 on October 28 after the first rate hike, to against the increasing mobility of instruments of monetary policy shifted to open market operations and reserve, the central bank attempts to use the growing number of tools to control liquidity. While the central bank to spend huge amount of tools, but since 2005, domestic liquidity has not decreased, in contrast increased year by year, obviously, the central bank's monetary policy instrument chosen is inappropriate. In early 2007, monetary policy tools for cognitive error, the central bank vice governor Wu Xiaoling in the Passive delivery of base money, the interest rate tool and can not play the role of absorbing market liquidity monetary policy .see the results of the passive base money invested .2007, although the central bank to raise interest rates five consecutive operation, but the interest rate is intended only to inhibit the worsening of inflation, not to curb excess liquidity: interest rate increase does not affect the liquidity growth of money supply and money demand .<><> is to determine and improve the determinants of domestic credit expansion, but also a decisive factor in investment growth. control of the credit scale to control the overheated investment control of the capacity expansion will indirectly control the expansion of external demand, while also reducing the base money the source of passive delivery. Money supply and money demand depends on the number of equilibrium prices and money supply, the demand for money prices, money supply price is greater than the demand for money prices, reduce the number of money demand, on the contrary, the demand increased, the demand for money prices and money supply is the inverse relationship between the price. money supply, prices are determined by interest rate decisions, while the price of the demand for money by the investment expected rate of return (or average profit margin of the decision), interest rate and investment rate of return is the inverse relationship between. Therefore, to control the overheated investment in China, we must improve the credit interest rates, when credit interest rates close to the expected rate of return on average investment level, high financing costs will reduce investment demand, with a corresponding expansion of credit will be checked, even if the desire of financial institutions to lend, investors are expected to return due to the decrease of demand for loans is no longer. In the process of domestic economic growth to solve the existence of Select .<><> overheated economic growth since 2004, monetary policy instrument choice pitfalls, the process of economic development, the existence of increased and its domestic asset price bubble endangered. Although the central bank ran out of the number of all monetary policy tools and instruments of monetary policy in the non-stop innovation, but it has never been able to tighten liquidity, liquidity tightening of monetary policy less and less flexibility , more and more extensive way of economic development, energy conservation and emission reduction is difficult to compliance, increasing pressure on environmental resources. monetary policy ineffective, dependent on external demand increased year after year, gradually enlarge the trade surplus, the increasing pressure of RMB appreciation, domestic monetary policy into the domestic accelerated depreciation, accelerated appreciation of the embarrassing situation of foreign .<><> I believe that the excess liquidity in the domestic investment growth too fast, excessive money and credit, a large trade surplus in the economic environment, to change the country economic growth, the development of the domestic economy to change the way monetary policy should be adjusted first, the price should be the primary tools as tools, while continuing to use the number of tools.'s mission is to control the price of tools the size of credit, control, expansion of investment demand, reduce international trade surplus, from the source control based on money supply; and Inheritance of the number of tools have been generated would help to reduce excess liquidity, improve monetary policy on economic growth mode transformation of the regulatory flexibility to improve the economic structure of the domestic imbalances, reduce domestic inflation, reducing pressure of RMB appreciation, and enhance the stability of the RMB currency. The price of common tools and the use of quantitative tools, will also play out of the domestic effects of asset price bubbles, stabilize the stock market artificially high and the housing market is conducive to rational asset prices return, help to strengthen domestic demand and expand domestic consumption, more importantly, with unrealistically high asset price bubbles out of the domestic financial market against global financial turmoil and economic crisis along with the ability to be strengthened. <> <> III differentiated macro-economic control policy <> <> In 2008, the State shall promptly develop a new round of macroeconomic structural adjustment policies, and deepen the depth of macroeconomic control, monetary policy mainly supplemented by fiscal policy and industrial policy to policy-oriented industrial restructuring, fiscal policy, monetary policy combined with the implementation of differentiated macro-economic control policy, the domestic economic structure of a depth control :<><> , in order to curb overheated investment in the first half of 2008, the benchmark lending rate five points to 10% -13% increase or so, or more. prices through monetary policy tools to suppress the demand for money, enabling the effective management of the credit scale expansion to ease overcapacity dependent increase in external demand situation, block the source of liquidity growth, and enhance flexibility in monetary policy, reducing the pressure of RMB appreciation for the progressive reform of arrangements for exchange rate system has won plenty of time .<><> Second, the implementation of discriminatory industrial adjustment policies, development of differentiated tax rate difference between lending rate and the difference between policies to promote economic growth mode. State may develop a more detailed industry support, restriction, prohibition directory, for the high-tech, energy-saving environmental protection, agricultural investment, and so to give industry preferential interest rates, while depending on the specific needs of industrial development, but also can give some tax incentives in the tax or financial subsidies; for high energy consumption, high emissions, polluting industries, in addition to the corresponding tax charge, the maximum interest rate can be implemented, and urges them conscious transformation of energy-saving environmental protection industry. For obvious excess capacity or potential trade surplus, the maximum interest rate can be implemented to reduce its production capacity expansion, the production capacity of the industry can give preferential interest rates, by credit to support its industrial growth; for the inclusion of industry the elimination of prohibited type or backward technology-based industrial investment, may prohibit financial institutions, credit .<><> Third, to further tighten the excess liquidity, strengthen liquidity management, protection of the money supply in line with economic growth, in line with economic development pattern to reduce market speculation of liquidity, effectively inhibit excessive asset price inflation, stabilize the financial market order. to further raise the deposit reserve rate will raise the deposit reserve ratio to 15%, while funds based on market supply and demand situation, size up the situation for open market business operations, increase or decrease in market supply of funds to ensure financial market volatility in a range of state .<><> can carry four, the loan interest rates, raising the deposit reserve ratio at the same time, the deposit base fractional rate of 4% -5% increase to between. microstructure, so that help improve the operating savings in asset prices, inhibit excess of assets over capital markets, reduce the risk of loss of market speculation, the high reserve ratio will help moderate increase under elastic liquid assets of financial institutions; the macro level, will help to increase efforts to curb inflation and maintain price stability and ensuring economic stability .<><> proposed implementation of the above differentiated macro-economic control policy, has its objective economic base: First, the current excess liquidity super; Second, in recent years, higher growth in domestic corporate profits, corporate capital accumulation off, the investment impulse strong, and the blind pursuit of scale and production; Third, speculative investment in the domestic market demand has a certain inertia strength , fine-tuning the policy was insufficient to reverse market expectations; Fourth, increase the benchmark deposit and lending interest rates differential between the pieces, both can inhibit the scale of the money supply, and can appropriately protect the profitability of financial institutions to improve the quality of bank assets, strengthen financial institutions, risk identification capacity, while also somehow able to restrain the effectiveness of hot money inflows. More importantly, when the financial market turmoil, the financial institutions to maintain adequate liquidity and bad debt reserves, the deposit insurance system has not yet Prior to establish a sound, objective financial institutions can enhance the resilience of .<><> differentiated not only on macroeconomic control policies to cool the economy can play an influential performance, not only conducive to economic growth mode transformation, and also help to promote industrial upgrading, promote investment in sustainable growth, employment growth can also protect the role of the differentiated .<><> macroeconomic control policy, although there is a certain degree of rigidity, but in general the statement is in line with the current period of world economic risk-adjusted background. In 2008 the world economy is facing a huge risk adjustment, the rigidity of the domestic economy overheating the domestic economy can be reduced to adjust dependent on external demand, to ease international trade friction, maintain stability of RMB exchange rate mechanism at the same time, rigid adjustment can be first on the domestic economy cooling, the objective can be expected to reduce the inflow of international hot money to help the domestic financial market stability, reduce risk-adjusted world economy could impact on the domestic market strength. <> < > In addition to control performance, the more differentiated than in the past macroeconomic policies more effective control means administrative law, the degree of market distortion will be reduced to a minimum. In the past the legal regulation of the administrative process, Since the state based system is not perfect, rigid rule of law, lack of corruption and strong infection, policy implementation way too much resistance, many Christians have the form of administrative legal means, the effect of the market correction is difficult to play .<><> the context of a market economy, the use of market instruments to adjust imbalances are the most efficient market structure, price adjustments, especially the most effective lever .<><> IV reform of rural land property rights and the industrialization process <> < ; reduction, the Ministry to secure 18 million mu of land-use planning of agricultural land will probably be a dream. as the most stringent protection of the national land, agricultural land is a large number of illegal occupation of land, industrial land rents collected, small property The highlight is just tip of the iceberg .<><> eyes of economists in the country, urbanization, industrialization and prosperity for the domestic economy has played a significant role in promoting, for which they strongly advocate making the process of urbanization . even some economic experts believe that the process of urbanization to promote the domestic transfer of rural to urban population, the domestic real estate development will continue in 2020, the domestic real estate demographic dividend is to promote sustainable development. In these seemingly correct theory, if not critical, or endless troubles .<><> urbanization and industrialization process is of course the inevitable process of economic development, but urbanization and industrialization process is a prerequisite: urbanization, industrialization process must be a substantial increase in agricultural productivity and consistent implementation of intensive agricultural production process of economic development for the city to provide adequate support. the process of urbanization is not only a process of economic development, but also a conversion of agricultural population transfer process . agricultural population of conversion: First, the need for urban economic development to provide adequate labor force units and the corresponding social security, and the second, conversion of agricultural population, agricultural production is not engaged in agricultural production and reduce the impact of population, In other words, agricultural production must be a new mode of agricultural production, through modern intensive agricultural production, improve the efficiency of agricultural production. Only two aspects to achieve the above, only with the process of urbanization and industrialization development. <> < ;> reform three decades, much faster than urban economic development within the rural economic development, the process of economic modernization in the city, in addition to state-owned grain production base, domestic agricultural production is always in the original agricultural production, agricultural production organization but also the lack of advanced organizational management, the household contract system for the implementation of this early in the reform of agricultural production organization still in use. Since the 90 years since the backward agricultural production led to a large number of rural population below the poverty line, in order to living better life, China started a large number of young workers out of rural areas each year, adding the city labor force. into the twenty-first century, 60,70,80 after the birth of the young labor force could not bear to poor living in rural areas, almost all from the countryside into the cities in search of employment opportunities. With the large number of rural exodus of the young, a large number of idle rural land barren, the domestic supply of agricultural production began to decline. In this economic environment, with the cost-based inflation economy, prices of agricultural production, agricultural production capacity the costs of agricultural products into the shortage of supply will naturally age, in 2007, domestic inflation and eventually a shortage of supply of agricultural products shown. Therefore, when the shortage of domestic agricultural products attributed the academic international agricultural production and supply, the author is .<><> not entirely agree with my opinion, in China's economic self-sufficiency in agricultural country into the industrialized countries in the process of reform and opening up the rural economy of China today hysteresis is the root cause of economic problems. Reform opening in the international cross-border allocation of capital, driven by technology, industrialization and the rise of the Chinese economy has entered a power stage, however, puts the process of industrialization in rural China excluded. in the vast rural areas, self-sufficient agricultural production is still the original dominant position, behind agricultural production and accelerate the industrialization process in the contradiction between the domestic economic structural imbalance leading to insufficient domestic demand deeper factors behind the rural market forms, the majority of the population of the rural market potential can be made without any consumer, industrial overcapacity will rely on the market digested the .<><> external demand in recent years, the author of each article in the annual policy written that should vigorously promote the rural land reform, development of rural finance, promoting the county's economic development, agricultural intensive operations. However, the existing rural land system in rural economic development has become the last obstacle to reform and opening up. Without the reform of land ownership in rural areas, rural land management rights transfer will not be able to achieve the objective, intensive management of agriculture will not be realized. Accordingly, the spread of self-sufficiency of the original agricultural production simply can not get from the new economic development pattern, the investment needs of modern agriculture will not be able in the vast rural land in agricultural production methods to achieve modernization, but also a policy called for just .<><> I believe that the reform of state-owned property, to the huge domestic urban economy to take off, accelerate the industrialization process in China, if property rights to rural land reform, then, the rural economy The development will usher in a new round of development of the domestic economy. With the reform of rural land property rights, will gradually be decentralized small-scale peasant mode of production of new alternative to modern agriculture. rural land property rights reform will not only increase the demand for rural investment, but also promote the formation of the rural financial market development. In the promotion of modern agricultural technologies ...