Government Industrial Funds Driving Rural Urban Renewal in the Greater Bay Area: An Investigation into the Mechanism Alleviating Financing Constraints for Privately Owned Enterprises under the Henggang Street Case

Abstract

Rural urban renewal in the Guangdong-Hong Kong-Macao Greater Bay Area represents a critical approach to addressing urban land resource limitations and promoting integrated urban-rural development; however, privately owned enterprises commonly encounter participation challenges due to financing constraints. This study examines the Henggang Street urban renewal project in Shenzhen as the case, utilizing literature review, case study, and comparative analysis methods to investigate how government industrial funds alleviate financing constraints for privately owned enterprises. The study finds that government industrial funds can significantly reduce the financing costs of private enterprises and improve financing efficiency and project implementation rates through a three-dimensional mechanism of ‘credit endorsement – trust transmission – risk sharing.’ Among these, the synergistic model of ‘government funds + family trust’ possesses unique value, as the enhancement of villagers’ trust can reciprocally strengthen the financing credit of private enterprises, increasing the probability of loan approval by 20%. Based on this, the paper offers recommendations in three areas: improving fund operation mechanisms, strengthening coordination in grassroots governance, and enhancing the supporting policy framework, to provide a reference for overcoming financing challenges faced by private enterprises in rural urban renewal within the Greater Bay Area.