RESEARCH ON INTERNATIONAL INSURANCE FUNDS INVESTMENT IN CHINA’S INFRASTRUCTURE CONSTRUCTION ADOPTING INNOVATIVE FINANCIAL LEASING MODEL

Abstract

Infrastructure construction underpins China’s socioeconomic development, and it is also an important guarantee for China to perpetuate sustainable economic growth in the long run. Fortified infrastructure construction projects, especially people’s livelihood projects, can not only fuel the healthy and sustainable development of China’s economy, but also complement the shortfall in comprehensively building a well-off society and effectively uplifting people’s inner fulfillment and happiness. Infrastructure construction highlights large capital investment and long recovery time in terms of capital utilization. Therefore, the investment in infrastructure construction in China has long relied on government fiscal funds. However, as infrastructure construction accelerates in China, local governments’ debts are growing bigger with higher risks behind and the central government has called local governments to deleverage and reduce debt. This was accompanied by increasingly prominent bottleneck of insufficient infrastructure construction funds. Therefore, it is of great practical significance to study how to expand financing channels for infrastructure construction to alleviate the pressure on government capital investment with innovative ways of thinking.This article uses a case study approach. Based on the in-depth analysis of the characteristics and investment preference of foreign insurance funds, this paper analyzes the significance and feasibility of introducing foreign insurance funds to invest in China's infrastructure construction. At the same time, this paper demonstrates the irreplaceable role of financial leasing companies funded by foreign insurance funds in connecting foreign insurance funds and domestic infrastructure construction, so as to build an innovative financial leasing model for infrastructure construction to attract foreign insurance funds to invest in China’s infrastructure construction.