Analysis on the introduction of private capital into urban infrastructure and its conflict

Abstract

China's urban infrastructure construction lagging behind the needs of social development. To accelerate the development of urban infrastructure will needed to introduce private capital. The financial difficulties caused by excessive reliance on government investment in construction of China's urban infrastructures are analyzed. The development ideas are put forward that urban infrastructure should be invested by more investor. Private capital should be introduced into the construction of urban infrastructure. Private capital and state-owned capital participate in the construction of urban infrastructure commonly must bound to have a conflict of interest. By the use of F-H method, the potential conflict of interest of the state-owned capital and private capital in the process of cooperation and its possible outcome is analyzed.