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Comparative Study of Equity Finance and Land Finance: Changes and Challenges

Author(s)

Xiaogang Gu

Affiliation(s)

Henan Institute of Economics and Trade, Zhengzhou, Henan, China

Abstract

This article provides an in-depth analysis of the intrinsic characteristics, advantages, potential risks, and future development prospects of equity finance and land finance. Equity finance refers to the model where relevant department obtain fiscal revenue by holding corporate equity, while land finance is based on land transfer and related tax revenues. Against the backdrop of a sluggish real estate market, land finance faces challenges, whereas equity finance is increasingly valued for its diversified fiscal revenue and long-term growth potential. Although the scale of equity finance is not yet on par with land finance, its potential in stimulating investment in emerging industries, meeting the financing needs of new industries, and developing data resources cannot be overlooked. Looking ahead, driven by strategy support, market demand growth, and technological advancements, equity finance is expected to become a new pathway to alleviate local fiscal pressures and resolve debt risks.

Keywords

Comparative Study; Equity Finance; Land Finance, Land Transfer, Corporate Equity

References

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