OREANDA-NEWS. August 05, 2013. Worry-free housing allows people enjoy a good and prosperous life. Shantytown revamping has an impact on the well-being of tens of thousands of shantytown residents. It is an inevitable requirement for supporting and improving people's livelihood and promoting social harmony and stability, as well as an effective way to maintain the sustainable healthy development of the economy and to speed up the transformation of economic development mode.

Needless to say, in the process of shantytown revamping nationwide, funding constraints are often a major factor that hinders the smooth progress of shantytown revamping. Shantytown revamping requires large amounts of funds, but local governments have limited finance resources and cannot fully meet the needs of shantytown revamping projects. On the other hand, there is a strong policy nature to shantytown revamping and welfare housing projects, so market funds often find it hard to enter that market. Therefore, commercial banks usually steer clear of shantytown revamping projects.

Remaining hidden in the market in good times while supporting the market in bad times. In recent years, CDB has made considerable achievements in supporting shantytown revamping projects. CDB has maintained close cooperation with governments at all levels and has continually increased its support for shantytown revamping on the premise of risk management, thus becoming a major bank in extending financial support for shantytown revamping. The key reason why CDB has made such accomplishments is that it has established a new model of "government-led, market operations, and financial support" and, relying on innovation in mechanisms, achieved triple-win for the government, the bank, and residents.

The 18th Party Congress called for the "implementation of strategy of innovation-driven development" and made arrangements for financial innovation. CDB has been the first to proceed on the building of a mechanism for financing shantytown revamping and has been a successful model for the development of welfare housing projects driven by financial innovation. Since 2005, CDB has used market building means to integrate the government's organizational advantages with development financing's advantages and made efforts to do away with the funding constraints on shantytown revamping across the country. Specifically, CDB has partnered with local governments in building market financing platforms and integrated various resources. The initial funding from CDB has made the projects possible, and has further brought in commercial banks and other social funds, thus achieving the organic integration of CDB funds with social funds and pushing forward the sustainable development of shantytown revamping.

"Financing + talent gathering" is another bright spot in shantytown revamping financial innovation. CDB has adhered to planning ahead and cooperating with the National Development and Reform Commission, the Ministry of Housing and Urban-Rural Development, and other government ministries in launching study of housing support policy and fundraising plans. CDB has strengthened institutional building, supported various localities in establishing housing support systems with assured quality and fair and just allocation and exit, and promoted the overall healthy development of China's welfare housing projects.

The strategic necessity of the projects, the financial balanceability of the overall business, and the sustainability of institutional development are the three principles of development financing. In the process of supporting shantytown revamping, CDB has expertly balanced the strategic necessity of the projects with the financial balanceability of the business, highlighted the CDB spirit of "regarding the country as the home and dedicating to the country", and won wide recognition from all walks of life. With this recognition, the sustainability of the development of CDB, as a financial institution that serves the national strategy, becomes a matter of course. In this sense, the overall balance of the above-mentioned three principles represents a higher level of financial innovation.