Views: 619|Replies: 2

Rural land reform and SOE reform vex renowned economist [Copy link] 中文

Rank: 9Rank: 9Rank: 9

Post time 2016-3-12 19:41:13 |Display all floors
On a Sunday's event that celebrated Li Yining 60 year teaching career, the former dean of Guanghua Management School at Peking University said there are still uncompleted reform issues that were his nagging worries.
The main issue is China's rural land reform. Hundreds of millions of rural residents have yet to receive certificates that confirm the legal rights of their small plots of contracted l ...

--------Click here for more information--------

Use magic tools Report

Rank: 4

Post time 2016-3-12 19:41:14 |Display all floors
The rural farm land problem can perhaps be solved simply by circumventing the legal title process, which takes time and can turn out to be very complex to nobody's benefit. My suggestion is for the government to bundle all these rural farm lands into REITs (Real Estate Investment Trusts) or even one single REIT with perhaps a guaranteed minimum yield by the government (in order to make them more attractive). The shares of these REITs then can be distributed to farmers according to their land size. These farm land thus can be immediately turned over to professional farm companies for production. These REIT shares will benefit farmers in two ways e.g. a guaranteed yield and higher share values when the farm lands become more profitable under professional and modern management. Now the vacating farmers can be moved into Zombie Towns (as the Central Government has suggested), thus solving the urbanization and zombie town problems at the same time. Now the government can also bundle these zombie towns into REITs as well and when they can generate yields and become more valuable, then they can be capitalized by selling them to willing private investors. A real win-win-win solution.

As for the SOE reform, my suggested SPS model is still considered the best as it uses preferred shares instead of common shares in the privatization process and thus it does not dilute the interests of private investors (I'll not go into details here as the model has be detailed before many times).

Use magic tools Report

You can't reply post until you log in Log in | register

BACK TO THE TOP
Contact us:Tel: (86)010-84883548, Email: blog@chinadaily.com.cn
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.