







































 Humanities and Social Science Research; Vol. 7, No. 3; 2024 

ISSN 2576-3024   E-ISSN 2576-3032 

https://doi.org/10.30560/hssr.v7n3p61 

 61 Published by IDEAS SPREAD 

 

Status and Enlightenment of Social Capitals' Participation in the 

Comprehensive Land Consolidation and Rehabilitation at The Free 

Trade Port of Hainan 

Jian Li1, Na Tang2 & Pengcheng Huang3 

1 College of Finance and Economics, Hainan Vocational University of Science and Technology, Haikou, China 

2 School of Financial Management, Hainan College of Economics and Business, Haikou, China 

3 Deloitte Touche Tohmatsu,Guangzhou, China 

Correspondence: Na Tang, School of Financial Management, Hainan College of Economics and Business, Haikou, 

China. E-mail: tangna2024/at/126.com 

 

Received: November 6, 2024; Accepted: December 4, 2024; Published: December 12, 2024 

 

Abstract 

Implementing pilot projects for comprehensive land consolidation and rehabilitation is a major initiative to follow 

The Thought on Ecological Civilization and the instructions of General Secretary Xi Jinping on Zhejiang's 

"Thousands of Village Demonstration and myriad of Villages Remediation" program. It is also a key project to 

support the construction of Hainan Free Trade Port and facilitate the implementation of the rural revitalization 

strategy. From the current situation, land consolidation mainly relies on government-allocated special funds and 

bank loan. Against the backdrop of deepening reforms of investing and financing and land comprehensive 

consolidation encompassing all regions and factors, the contradiction between insufficient capital from 

government-allocated funds and increasing tasks of land comprehensive consolidation has become increasingly 

prominent. Bank credit funding tends to give rise to the hidden debt of government, leading it urgent to expand 

and improve diversified funding mechanisms to ensure the effectiveness of the effort for land comprehensive 

consolidation. This article is based on the status of comprehensive land consolidation in Hainan Free Trade Port, 

combined with the background of rural revitalization and urban-rural integrated development. It summarizes the 

modes of social capital participation in comprehensive land consolidation, analyzes the existing difficulties, and 

proposes corresponding countermeasures and suggestions.  

Keywords: Hainan Free Trade Port, social capital, comprehensive land consolidation and rehabilitation 

1. Introduction 

1.1 the Requirement of High-Quality Development of Hainan, and Support of Establishment of Hainan Free Trade 

Port 

In China, comprehensive land consolidation across the board is an improvement of natural resource application 

with the main tasks of land consolidation of agriculture and construction, rural ecological protection and restoration, 

as well as rural historical and cultural preservation. It is also crucial in serving the national strategy of rural 

revitalization. Since “the reform and opening-up”, China's industrialization process has grown exponentially, 

driving economic development while also leading to excessive consumption of resources. Taking land resources 

as an example, in the early stages of the reform and opening-up, various regulations and management systems 

were flawed, lacking guidance for enterprises. Moreover, due to the disorderly nature of market development, 

conflicts occured between land use and industrial planning nand economic development, resulting in the wastage 

of various natural resources and the net loss of farmland in terms of the environment. Therefore, in 2018, China 

initiated comprehensive land consolidation projects across the country to address the shortcomings of traditional 

land management. By the end of 2023, a total of 448.8 billion Yuan(C.N.Y) had been invested in 1,304 projects 

nationwide, with a comprehensive consolidation area of 3.78 million Mu(chinese acreage) completed, and 470,000 

Mu(chinese acreage) of cultivated land addition, 120,000 Mu(chinese acreage) of construction land deduction. A 

series of China's land comprehensive consolidation experiences that are promotable and replicable have been 

formed.   

The total land area of Hainan Province is 3.5187 million hectares, accounting for 42.5% of the country's tropical 

land. Among it, approximately 3.3136 million hectares of land have been developed and utilized, representing a 



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significant proportion of the province's total account. Hainan is abundant in natural resources and boasts a beautiful 

environment, with tourism and the elderly care as its main industries. In 2023, Hainan's GDP growth rate was 

9.2%, 4.96% points higher than the national average. Under the Free Trade Port policy, comprehensive land 

consolidation can help intensify land use and optimize spatial layout to facilitate the introduction of high-tech 

enterprises, achieve industrial clustering effects, and high-quality economic development. 

Comprehensive land consolidation is able to optimize the allocation and utilization of resources in Free Trade Port, 

facilitating the dynamic integration of policy promotion and industrial optimization. As the construction of the 

Free Trade Port progresses deeply, Hainan faces a significant shortage of land for major projects. Meanwhile, 

issues such as fragmented farmland, disordered land use, inefficient land utilization, and degraded ecological 

quality also urgently need to be addressed. Therefore, through the comprehensive land consolidation, connecting 

scattered farmland into contiguous areas, using agricultural and construction land intensively, improving land 

quality, and protecting the local environment can effectively solve problems of land shortages for projects, 

farmland protection, and ecological conservation. 

1.2 Serve the Rural Revitalization Strategy 

Compared to traditional land consolidation, comprehensive land consolidation aligns more closely with the 

demands of the new era and meets practical needs, playing a significant role in promoting rural revitalization and 

construction. 

Compared to traditional land consolidation, comprehensive land consolidation aligns more closely with the 

demands of the new era and meets practical needs, playing a significant role in promoting rural revitalization and 

construction. 

In terms of promoting industrial reformation, idle homesteads, unused village and town land, abandoned mines, 

factories, and other unsufficient used construction land should be managed in a coordinated way to optimize the 

layout of rural construction land. The conserved land space should be utilized for resettlement, integrated 

infrastructure, public welfare, etc. By adopting methods such as joint ventures, partnerships, and equity 

participation, relevant industrial projects can be made profitable, thereby enhancing the self-sustainable capacity 

of rural industries. 

In terms of creating livable environments, efforts are focused on the protection and restoration of rural ecological 

environments, improving rural living conditions, and construct ecologically livable community. Agricultural 

ecological restoration projects are implemented to improve the quality of ecological water systems. 

In terms of protect the inheriting traditional culture, emphasis is placed on the protection of local antique buildings 

to maintain the continuity of local culture. 

1.3 Promote the Balanced Development of Cities and Counties in Hainan 

As an island province, Hainan is currently in the stage of building a Free Trade Port and needs to attract a large 

amount of external capitals and talents. Cities such as Haikou and Sanya have received relatively greater 

development opportunities, and have attracted much more external capital and service providers than its at other 

regions. The increasing disparity in resources and attention received by various regions is bound to a consequence 

which uneven development occured among cities and counties. 

Refer to the economic data of China's rapidly developing Province such as Guangdong and Jiangsu, we can observe 

that there is an uneven regional industrial layout in Guangdong. The GDP of cities in Guangdong and Jiangsu in 

2023 is as follows Table 1. 

 

Table 1. GDP of cities in Guangdong and Jiangsu in 2023 (unit: 100 million yuan) 

Rank Cities in Guangdong 2023’s GDP Cities in Guangdong 2023’s GDP 

1 Shenzhen 34,606.4 Suzhou 24,653.4 

2 Guangzhou 30,355.73 Nanjing 17,421.4 

3 Foshan 13,276.14 Wuxi 15,486.2 

4 Dongguan 11,438.13 Nantong 11,813 

5 Huizhou 5,639.68 Changzhou 10,116 

6 Zhuhai 4,233.22 Xuzhou 8,900 

7 Jiangmen 4,022.25 Yangzhou 7,423 

8 Zhanjiang 3,793.59 Yancheng 7,404 



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9 Zhongjiang 3,850.65 Taizhou 6,732 

10 Maoming 3,987.22 Zhenjiang 5,264 

11 Shantou 3,158.32 Huaian 5,015 

12 Zhaoqing 2,792.51 Suqian 4,398 

13 Jieyang 2,445.03 Lianyungang 4,364 

14 Qingyuan 2,120.19   

15 Shaoguan 1,620.83   

16 Yangjiang 1,581.79   

17 Shanwei 1,430.84   

18 Meizhou 1,408.43   

19 Chaozhou 1,356.59   

20 Heyuan 1,348.22   

21 Yunfu 1,207.42   

 Total 135,673.18 Total 128,990 

Data source: Official websites of Governments of Guangdong and Jiangsu 

 

From Table 1: The total GDP of Guangdong Province amounts to CNY 13,567.318 billion yuan, with a gradient 

distribution among its cities. Shenzhen and Guangzhou, as developed cities, have both surpassed the three trillions 

mark in GDP. Foshan and Dongguan, as important cities in The Pearl River Delta region, have GDP totals 

exceeding one trillion.The GDP of cities such as Huizhou, Zhuhai, Jiangmen, Zhanjiang, Zhongshan, Maoming, 

and Shantou ranges between 300 billion and 600 billion CNY yuan, placing them in the second tier. In contrast, 

cities like Zhaoqing, Jieyang, Qingyuan, Shaoguan, Yangjiang, Shanwei, Meizhou, Chaozhou, Heyuan, and Yunfu 

have relatively lower GDP totals, resembling cities with developing economies.The total GDP of Jiangsu Province 

is close to that of Guangdong. Among them, Suzhou, Wuxi, Nanjing (the provincial capital), Nantong, and 

Changzhou have GDPs exceeding one trillion CNY(with Suzhou surpassing two trillion CNY). While other cities 

range from 400 billion to 900 billion yuan, indicating a more balanced development across the province. 

Guangzhou, Shenzhen, Foshan, and Dongguan in Guangdong Province concentrate the majority of the province's 

financial, IT, technology, trade, and manufacturing enterprises. Other cities’ industries are homogeneous , with 

the real estate industry accounting for a significant proportion of their local GDP. In contrast, Jiangsu has a 

relatively balanced industrial distribution, with a more reasonable allocation of "resources," "commerce," and 

"residential" corresponding to land use. From the economic development situations of various cities in Guangdong 

and Jiangsu provinces, it can be seen that the distribution of population is often determined by the distribution of 

industries. An imbalanced industrial distribution will directly lead to significant differentiation in both economy 

and population. 

As a national Free Trade Port construction base, Hainan Province achieved GDP of 755.118 billion yuan in 2023, 

according to data from the National Bureau of Statistics. On a base period comparison, representing a 9.2% 

increase from the previous year. Among them, the GDPs of Haikou, Danzhou, and Sanya were 235.844 billion 

yuan, 100.284 billion yuan, and 97.134 billion yuan, respectively. The total GDP of these three cities accounted 

for 57.37% of it at province.In terms of population, Hainan Province had a permanent resident population of 

approximately 10.4321 million people at the end of 2023. Among them, Haikou City had around 3.0016 million, 

accounting for approximately 28.78% of the province's total; Danzhou City had 1.0156 million, accounting for 

about 9.73%; and Sanya City had 1.0659 million, accounting for about 10.22%. From the data, it can be observed 

that there is an oligarchic trend in both the economy and population among the cities in Hainan province. The 

uneven development among cities and counties is not conducive to the construction of Hainan Free Trade Port. 

Integrating the construction of Hainan Free Trade Port into comprehensive land consolidation throughout the 

region will help ensure reasonable resource allocation, scientific industrial distribution, narrowed urban-rural 

development gaps, and balanced regional development. 

2. Model and Characteristics of Social Capital Participation in Comprehensive Land Consolidation in 

Hainan Free Trade Port 

2.1 Summary of Current Pilot Projects of Comprehensive Land Consolidation in Hainan 

According to public information sourced from the website of the Hainan Provincial Natural Resources and 

Planning Department, two departments have conscientiously implemented the spirit of the document《Opinions 

of the General Office of the Hainan Provincial People's Government on Carrying Out Pilot Projects for 



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Comprehensive Land Consolidation Throughout the Region》,issued the document 《Announcement on the 

Application for Pilot Projects of Comprehensive Land Consolidation Throughout Hainan Province in 2020》, 

initiating the consolidation campaign across Hainan from 2020 to 2023, encompassing a total of 41 pilot projects. 

Among these, there were 25 items in 2020, 10 in 2021, and an additional 6 projects approved successively from 

2022 to 2023. The primary objectives of these pilot projects are “land intensification”, “basic land consolidation”, 

and “urban-rural integrated development”, followed by “village relocation and merging”, as well as “special 

ecological protection”. The responsible entities are primarily local governments and Hainan Farming & Land 

Reclamation Investment Holding Group Co., Ltd. The eligible comprehensive land consolidation projects in 

Hainan are as follows Table 2. 

 

Table 2. List of pilot projects for comprehensive land consolidation in Hainan Province 

Rank 

City/County 

(Agricultural 

Reclamation) 

Pilot Location for Land 

Consolidation 
Type of Consolidation 

1 Haikou City 

Jiazi Town, Qiongshan 

District, Haikou City, Hainan 

Province 

Land Intensification, Special 

Ecological Protection 

2  
Dongshan Town, Xiuying 

District, Haikou City 
/ 

3  
Dazhipo Town, Meilan 

District, Haikou City 
/ 

4 Sanya City 
Yazhou District, Sanya City, 

Hainan Province 

Land Intensification, Basic Land 

Consolidation 

5  
Tianya District, Sanya City, 

Hainan Province 

Land Intensification, Basic Land 

Consolidation, Urban-Rural 

Integration 

6  
Yucai Ecological Zone, Sanya 

City, Hainan Province 
Same as above 

7  
Jiyang District, Sanya City, 

Hainan Province 

Land Intensification, Urban-Rural 

Integration, Basic Land 

Consolidation, Relocation and 

Merging 

8  
Haitang District, Sanya City, 

Hainan Province 

Land Intensification, Basic Land 

Consolidation, Urban-Rural 

Integration 

9 Danzhou City 
Zhonghe Town, Danzhou 

City, Hainan Province 

Basic Land Consolidation, Special 

Ecological Protection 

10  Heqing Town, Danzhou City / 

11 Qiongzhong County 
Yinggen Town, Qiongzhong 

County, Hainan Province 

Land Intensification, Relocation and 

Merging, Urban-Rural Integration 

12  

Hongmao Town, Qiongzhong 

Li and Miao Autonomous 

County 

/ 

13  

Limushan Town, Qiongzhong 

Li and Miao Autonomous 

County 

/ 

14  

Wanling Town, Qiongzhong 

Li and Miao Autonomous 

County 

/ 

15 Qionghai City 
Huishan Town, Qionghai 

City, Hainan Province 

Land Intensification, Urban-Rural 

Integration, Special Ecological 

Protection, Relocation and Merging 

16 Chengmai County 
Yongfa Town, Chengmai 

County, Hainan Province 

Land Intensification, Special 

Ecological Protection 



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17 

Hainan Farming & Land 

Reclamation Investment 

Holding Group 

Hainan Nanping Farm 
Land Intensification, Relocation and 

Merging, Basic Land Consolidation 

18  Hainan Rongguang Farm Same as above 

19  Hainan Guangba Farm 
Land Intensification, Basic Land 

Consolidation 

20  Hainan Xilian Farm 
Land Intensification, Relocation and 

Merging, Basic Land Consolidation 

21  
Hainan Grass and Livestock 

Group 

Land Intensification, Basic Land 

Consolidation 

22  Hainan Nanjin Farm Same as above 

23  Hainan Honghua Farm Same as above 

24  Hainan Donglu Farm Same as above 

25 Lingao County 
Xinying Town, Lingao 

County, Hainan Province 

Land Intensification, Basic Land 

Consolidation, Special Ecological 

Protection 

26  
Huangtong Town, Lingao 

County 
/ 

27  Nanbao Town, Lingao County / 

28  
Dongying Town, Lingao 

County 
/ 

29 Ledong County 
Jianfeng Town, Ledong 

County, Hainan Province 
Basic Land Consolidation 

30 Baoting County 
Liugong Township, Baoting 

County, Hainan Province 
Land Intensification 

31 Ding'an County 
Longmen Town, Ding'an 

County, Hainan Province 

Urban-Rural Integration, Basic Land 

Consolidation, Special Ecological 

Protection 

32 Lingshui County 

Longguang Town, Lingshui 

Li Autonomous County, 

Hainan Province 

Land Intensification 

33 Wanning City 
Liji Town, Wanning City, 

Hainan Province 
Same as above 

34 Changjiang County 

Changhua Town, Changjiang 

Li Autonomous County, 

Hainan Province 

Land Intensification, Urban-Rural 

Integration 

35  

Wangxia Township, 

Changjiang Li Autonomous 

County 

/ 

36  

Haigang Mining Area, 

Changjiang Li Autonomous 

County 

/ 

37 Wenchang City 
Fengpo Town, Wenchang 

City 
/ 

38  
Dongge Town, Wenchang 

City (Entire Area) 
/ 

39 Ding'an County 
Longhu Town, Ding'an 

County (Entire Area) 

Land Intensification, Basic Land 

Consolidation, Special Ecological 

Protection 

40 Dongfang City 

Luodai River Basin, Jiangbian 

Township, Xinming Village, 

Dongfang City 

/ 

41 Tunchang County 
Tuncheng Town, Tunchang 

County 
 

Data source: Hainan Provincial Government network 



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2.2 Characteristics of Social Capital's Participation in the Comprehensive Land Consolidation of Hainan Free 

Trade Port 

Reference from literature, Chen Huimei (2023) identifies four modes of social capital participation in 

comprehensive land consolidation projects at the current stage of China. These are: 1) the market-oriented 

operation mode of government investment companies; 2) independent development by enterprises or individuals; 

3) the public-private partnership (PPP) mode; and 4) the entrusted enterprise construction mode. According to land 

consolidation announcements published by governments at various levels in Hainan and the List of Pilot Projects 

for Comprehensive Land Consolidation across Hainan region (Table 2), the current modes of social capital 

participation in comprehensive land consolidation projects in Hainan are the market-oriented operation mode of 

government investment companies and the PPP mode. 

The market-oriented operation mode of government investment companies involves government-controlled 

companies or groups operating relevant industries or implementing construction projects through market-oriented 

operational methods. This mode can effectively address issues such as land transfer registration, integrate internal 

and external resources of state-owned enterprises, and ensure the standardized implementation of projects. For 

example, Hainan Provincial Nongken Investment Holding Group Company (AS known as "Hainan Nongken 

Group")'s Comprehensive cross region Land consolidation Project in Honghua Farm involves the group company 

coordinating with relevant government agencies on land transfer matters to resolve challenges like the boundaries 

of development, insufficient construction land quotas, and insufficient farmland quotas. Hainan Nongken Group 

takes responsibility for project planning and design, bidding and tendering as well as project management to ensure 

the standardized implementation of the project. By integrating resources both within and outside the group 

company, enhancing the speed of advancement. Meanwhile, guided by the 《Opinions on Further Promoting the 

Reform and Development of State Farms 》 which issued by the State Council, Hainan Nongken Group introduces 

social capital as a supplementary funding source for comprehensive land consolidation projects by capitalizing 

and assetizing agricultural land, thereby activating the vitality of land resources. 

The public-private partnership (PPP) model involves the government approval on construction projects and 

authorizing bidding entity to select suitable social entities through the public bidding activity to serve as the 

investor and contractor. Through contract signing, the rights and obligations, revenue sources, and distribution 

methods of both the government and the social capital parties are determined. The project is implemented and 

completed using a social capital operation model of "full investment, full-process operation, and full risk bearing" 

to advance the implementation and final acceptance of comprehensive land consolidation projects. This model 

reduces the overall project costs and addresses issues such as government funding shortages.For example, 

Guangzhou S.P.I Design Co., Ltd. (As knwon as "S.P.I") has actively participated in rural revitalization initiatives 

in the early stages, successfully creating exemplary rural revitalization projects such as the “Guangzhou Conghua 

Nanping Meditation Town”, “Hunan huaihua xupu Beidouxi”, and “jiangxi·wuyuan Shuimo Shanghe Artistic 

Town”. As the social investor and contractor for the pilot project of comprehensive land consolidation in Longhu 

Town, Ding'an County, Hainan Province, S.P.I has effectively addressed the funding shortage faced by the Ding'an 

County’s Government. By leveraging market-oriented operations, it also has effectively integrated all Influencing 

factor across Longhu, Ding'an County, reducing project implementation and operational costs while enhancing the 

efficiency of project’s construction and management.The mode of social capital's participation in the 

comprehensive land consolidation project of Hainan Free Trade Port is shown in Table 3. 

 

Table 3. List of comprehensive land consolidation projects involving social capital’s participation in Hainan Free 

Trade Port 

Serial 

Number 

Pilot Location Social Capital 

Participation Mode 

Mode Characteristics 

1 Jiazi Town, Qiongshan 

District, Haikou City 

Government-Social 

Capital Cooperation 

Reduced overall project costs and addressed 

government funding shortages 

2 Dongshan Town, 

Xiuying District, Haikou 

City 

Government-Social 

Capital Cooperation 

Same as above 

3 Dazhipo Town, Meilan 

District, Haikou City 

Government-Social 

Capital Cooperation 

Same as above 

4 Yazhou District, Sanya 

City 

Government 

Investment 

Effectively addressed land transfer 

registration issues and insufficient farmland, 



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Company Market 

Operation 

integrated internal and external resources of 

state-owned enterprises, and ensured project 

standardization 

5 Tianya District, Sanya 

City 

Government 

Investment 

Company Market 

Operation 

Same as above 

6 Yucai Ecological Zone, 

Sanya City 

Same as above Same as above 

7 Jiyang District, Sanya 

City 

Same as above Same as above 

8 Haitang District, Sanya 

City 

Same as above Same as above 

9 Zhonghe Town, Danzhou 

City 

Same as above Same as above 

10 Heqing Town, Danzhou 

City 

Government-Social 

Capital Cooperation 

Reduced overall project costs and addressed 

government funding shortages 

11 Hongmao Town, 

Qiongzhong Li and Miao 

Autonomous County 

Same as above Same as above 

12 Yongfa Town, Chengmai 

County 

Government 

Investment 

Company Market 

Operation 

Effectively addressed land transfer 

registration issues and insufficient farmland, 

integrated internal and external resources of 

state-owned enterprises, and ensured project 

standardization 

13 Nanping Farm of Hainan 

nonken group, Hainan 

Province 

Same as above Same as above 

14 Rongguang Farm of 

Hainan nonken group, 

Hainan Province 

Same as above Same as above 

15 Guangba Farm of Hainan 

nonken group, Hainan 

Province 

Same as above Same as above 

16 Xilian Farm of Hainan 

nonken group, Hainan 

Province 

Same as above Same as above 

17 Grass and Livestock 

Group of Hainan nonken 

group, Hainan Province 

(Full Region) 

Same as above Same as above 

18 Nanjin Farm of Hainan 

nonken group, Hainan 

Province 

Same as above Same as above 

19 Honghua Farm of Hainan 

nonken group, Hainan 

Province 

Same as above Same as above 

20 Donglu Farm of Hainan 

nonken group, Hainan 

Province 

Same as above Same as above 

21 Xinying Town, Lingao 

County, Hainan Province 

Government-Social 

Capital Cooperation 

Reduced overall project costs and addressed 

government funding shortages 

22 Huangtong Town, 

Lingao County, Hainan 

Province 

Same as above Same as above 



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23 Nanbao Town, Lingao 

County, Hainan Province 

Same as above Same as above 

24 Dongying Town, Lingao 

County, Hainan Province 

Same as above Same as above 

25 Liugong Township, 

Baoting County, Hainan 

Province 

Same as above Same as above 

26 Longmen Town, Ding'an 

County, Hainan Province 

Same as above Same as above 

27 Longguang Town, 

Lingshui County, Hainan 

Province 

Same as above Same as above 

28 Haigang Mining Area, 

Changjiang Li 

Autonomous County, 

Hainan Province 

Same as above Same as above 

29 Dongge Town, 

Wenchang City 

Government 

Investment 

Company Market 

Operation 

Effectively addressed land transfer 

registration issues and insufficient farmland, 

integrated internal and external resources of 

state-owned enterprises, and ensured project 

standardization 

30 Full Region of Longhu 

Town, Ding'an County 

Government-Social 

Capital Cooperation 

Reduced overall project costs and addressed 

government funding shortages 

31 Luodai River Basin and 

Xinming Village, 

Jiangbian Township, 

Dongfang City 

Same as above Same as above 

32 Tuncheng Town, 

Tunchang County 

Same as above Same as above 

Data source: Hainan Provincial Government network 

 

3. Present situation and analysis of Hainan comprehensive land consolidation 

3.1 Status of Social Capital's Participation in Hainan Comprehensive Land Consolidation 

3.1.1 Policy Support for Social Capital Investment in Comprehensive Land Consolidation projects 

The Hainan Provincial Government has issued documents like the《Opinions of the General Office of the Hainan 

Provincial Government on Carrying Out Pilot Projects for Comprehensive Land Consolidation across the Entire 

Region》 (Qiongfu letter [2020] No. 321), encouraging other cities and counties’government in Hainan to innovate 

investment and financing mechanisms, leverage the guiding role of fiscal funds and the leading role of financial 

institutions in guiding social capital, and update the enthusiasm of social capital to participate in comprehensive 

land consolidation. The Hainan Provincial Department of Finance, the Provincial Department of Natural Resources 

and Planning have jointly issued the 《Measures for the Administration of Special Funds for Ecological Restoration 

of Land Space in Hainan Province》, providing financial support through special funds to encourage social entities 

to undertake comprehensive land consolidation projects. This initiative aims to further deepen the reform of state 

farms, facilitate closer integration between state farms and local entities, and promote high-quality development 

of Hainan Free Trade Port. Meanwhile, The Hainan Provincial Government also has issued the 《Notice on Several 

Measures to Further Promote the Integrated Development of State Farms and Local entities》 (Qiong Letter [2022] 

No. 14), supporting the comprehensive consolidation of land within state farms, encouraging innovative financial 

models, and attracting diversified social capital investments through the listing of subsidiaries, bond issuance, and 

ABS products. 

3.1.2 Social Entities Participate in the Whole Process of the Comprehensive Land Consolidation Project 

Given the complexity, multidisciplinary nature, and significant capital requirements of all regions comprehensive 

land consolidation projects, in order to better accomplish the various tasks of projects, social entities are introduced 

as service providers throughout the entire process, from project approval to project construction, supervision, as 



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well as final audit, to attract social investments and participation. For example, the Dongfang city’s Government 

and Danzhou city’s Government publicly selected entities to serve as the main implementers for the comprehensive 

land consolidation project in Luodai River, and Heqing Town, responsible for the full-process investment and 

construction of projects. 

3.1.3 Industrial Integration Attract Social Capital Investment 

Apart from aiming at ecological restoration and protection, land intensification, and supplementary farmland 

indicators, the all regions comprehensive land consolidation in Hainan also ultimately seeks to build distinctive 

towns and villages characterized by the "Trinity" of agriculture, culture, and tourism, synchronous improvement 

in production, living, and ecology, and deep integration of the primary, secondary, and tertiary industries. 

Therefore, in terms of the integration, there is a great need to combine policy documents with local conditions and 

introduce industries suitable for local development through market-oriented operations. For example, as the 

investment and construction entity for the land consolidation project in Longhu Town, Ding'an County, Hainan 

Province, S.P.I uses a three-step approach: from "agricultural land consolidation" to "production linkage" and then 

to "cultural tourism integration" to optimize the local agricultural industrial structure in Longhu Town. This has 

transformed Longhu Town into a rural leisure tourism resort and the Longhu Future Rural Community, have 

promoting the integrated development of agriculture, culture, and tourism industries. 

3.2 Difficulties in the Participation of Social Capital in the Projects 

3.2.1 Few Clear Source of Income 

Currently, the definitive income for Hainan land consolidation projects mainly comes from the trading of 

construction land quota and newly-added farmland quota. The revenue from these sources is influenced by 

fluctuations in market prices. Other potential revenue streams include earnings generated by the industries 

introduced after the completion of the projects, although the future operational income remains uncertain. Given 

the fewer of clear revenue sources, it may be challenging to attract social capital invest in the projects. 

3.3.2 Policy and Regulatory Limitations 

(1) It is difficult to advance policy coordination. All regions comprehensive land consolidation involves multiple 

departments and policies, requiring coordination and cooperation among all departments. However, in reality, 

there often exists the issue of difficulty in advancing policy coordination, leading to obstacles in the work. 

(2) Regulatory constraints. Current laws, regulations, and policies impose certain restrictions on land consolidation 

projects, such as strict conditions for modifying planning of land use and cumbersome approval procedures. These 

constraints may increase the difficulty and time cost of the work, affecting the progress and effectiveness of the 

consolidation efforts. This will prolong the time it takes for social capital investments to generate returns, as well 

as impacting the enthusiasm for such capital’s investments. 

(3) Lack of policy continuity. The Hainan Provincial Department of Finance and the Department of Natural 

Resources and Planning jointly issued the《Administrative method for Special Funds for Ecological Restoration 

of Land and Space in Hainan Province》, providing special funds to support all regions comprehensive land 

consolidation projects. However, this document expired in 2022, and no subsequent documents have been issued 

to clearly stipulate continued fiscal fund support for the projects. Since land consolidation projects possess 

characteristics of publicity , if fiscal funds do not continuously support these projects, the enthusiasm for social 

capital investment will be suppressed. 

(4) There is a lack of issued policy documents that stimulate social capital investment. According to publicly 

available sources, Hainan Provincial Government has issued the 《Opinions on Carrying Out all regions 

Comprehensive Land Consolidation Pilots》to guide departments in attracting social capital investment. It includes 

tax reductions and exemptions for the projects related to farmers' housing and infrastructure construction base on 

relevant regulations. However, no further guidance documents have been issued subsequently to stimulate social 

capital investment as well, given the example of those policies, 《tax exemption or reduction policies for social 

entities participating in or investing in land consolidation projects》 and 《reward policies for social entities 

promoting full employment in rural areas》. 

3.3 Land Ownership 

All regions Comprehensive land consolidation necessitates adjustments to land ownership. In reality, difficulties 

often occured, which may hinder the smooth progress of remediation work and prolong the project duration. Since 

social capital investors tend to prefer shorter periods for obtaining returns on their investments, they may have 

concerns about duration risk of projects 



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3.4 Channels Lack for Social Capitals Directly Participate in Hainan Comprehensive Land Consolidation 

Currently, there are two primary ways for social capital to directly participate in Hainan Free Trade Port 

comprehensive land consolidation projects: directly participating in the open selection of social entities for projects, 

and trading related index assets in the specific market. However, there are limited channels for social capital 

participation. 

From a practical perspective, all regions comprehensive land consolidation involves multiple systematic projects 

and requires substantial capital investment. Therefore, government-controlled companies or group corporations 

tend to cooperate with banks and other financial institutions, where banks provide long-term and large-scale credit 

funding to support the implementation of project engineering. Additionally, under the current capital cooperation 

model, social entities that win the projects face difficulties in obtaining valid certification documents for land index 

circulation as financing application materials. Consequently, other social entities also find it challenging to 

specifically invest in land comprehensive consolidation projects 

4. Suggestion and Countermeasures for Social Capital to Participate in Hainan Land Comprehensive 

Consolidation Projects 

4.1 Complete Relevant Policies 

4.1.1 Issued Continuous Fiscal Policy Documents to Support the Projects 

Land consolidation projects possess certain public characteristics and require financial support. However, the 

government administrative measures document that provided special financial fund support for all regions 

comprehensive land consolidation projects has been expired in 2022, and no similar document issued subsequently. 

Therefore, Departments should coordinate the work of projects in a unified manner, the follow-up policies on 

special fund ought to issue as well, enhence the support for both economics and approval, and send a positive 

signals to attract investment. 

4.1.2 Simplifying Approval Procedures for Social Entities Investing in Projects 

Given the systematic, diverse, and complex nature of land consolidation projects, their construction and 

advancement involve multiple administrative approvals. To enhence the enthusiasm of social entities’ participation, 

relevant approval procedures for projects should be pre-approved or use minimalist approval model with regard to 

related materials. Strengthening in-process supervision and management as well as post-supervision can accelerate 

construction progress while safeguarding the legitimate rights and interests of farmers and social capital. 

4.1.3 Issuing Policies to Stimulate Social Capital Investment 

The government should issue policy documents offering tax exemptions or reductions for financing products 

related to social entities investing in land consolidation projects. Additionally,  

policy documents providing incentive rewards should be issued for introducing suitable industries by relevant 

social entities to promote employment of the local rural population. By drawing lessons from South Korea's 

"Saemaul Undong (New Village Movement)", policy documents offering financial subsidies or patent incentives 

should also be issued for engaging in rural industry-academia-research integration projects, thereby stimulating 

social capital investment in projects. 

If you follow the “checklist”, your paper will conform to the requirements of the publisher and facilitate a problem-

free publication process. 

4.2 Expand the Channels for Social Capital to Participate in the Comprehensive Land Consolidation of Hainan 

Free Trade Port 

4.2.1 Carbon Trading as a Means for Expanding Channels to Social Capital Involvement 

Given the current situation where social capital's participation in the integrated land consolidation of Hainan Free 

Trade Port is limited, with social capital holding a small share and facing a lack of clear revenue sources for such 

projects, there is a risk that social capital, driven by profit, may resort to marginal practices. This includes misuse 

the linkage policy between land use increments and decrements to increase construction land quotas and newly-

added farmland indicators for market transactions, leading to a waste of land resources where newly-added 

farmland remains uncultivated. Wu Jialong and Su Mengyuan (2021) argue that the integrated all regions land 

remediation aligns well with the connotation of the "dual-carbon" (carbon peaking and carbon neutrality) goals in 

terms of development direction and overall objectives. Integrated land consolidation projects can promote the 

achievement of these "dual-carbon" goals. Therefore, by establishing a local carbon emission quota market or 

connecting to regional and national trading markets, the newly-generated carbon emission quotas from land 



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consolidation projects can be traded in the market, providing sustainable revenue for projects and avoiding 

inefficient use or waste of land resources and other natural elements. 

4.2.2 Expanding Channels for Social Capital Involvement by Drawing on the Experiences of Guangzhou and 

Chongqing 

In guiding social capital to participate in fund-raising for land remediation projects, we can draw on the "Huangpu 

Experience" from Guangzhou. On August 8, 2024, the Guangzhou government issued the first Rural Property 

Rights Transfer and Transaction Certificate in Huangma Community, Huangpu District, witnessing the acquisition 

of rural forestland management rights through public transactions by the project winner. The issuance of the Rural 

Property Rights Transfer and Transaction Certificate provides evidentiary support for the project winner in 

applying for agricultural industrialization projects, subsidies, and mortgage financing, thereby addressing the 

financing difficulties faced by social entities participating in rural industrialization projects. Additionally, we can 

also draw on the experiences of Chongqing's "land quotas" and Guangzhou's "land vouchers". By using land 

vouchers or land quotas, which only specify the area of rights and exchange value without clarifying the specific 

location, the "land quotas" and "land vouchers" can be openly traded and transferred on government platforms. 

This approach broadens the channels for social capital to participate in comprehensive land consolidation projects, 

while simultaneously establishing an operational system that encourages "voluntary reclamation, public 

transactions, returns to farmers, direct transfer of funds, and regulated use", thereby safeguarding the legitimate 

land-related income of farmers or village (residential) collective economic organizations. 

5. Conclusion 

This article summarizes the meaning of why social capital participates in Hainan comprehensive consolidation 

projects at first. Then it summarizes models and characteristics of social capital participation in comprehensive 

land consolidation in Hainan, and there are six characteristics of mode and two modes of capitals’ involvement. 

According to policy and announcements about bidding, this article finds the situation of social capital participation 

in comprehensive land consolidation in Hainan so that it digs out some problems of modes of capital’s involvement 

in comprehensive land consolidation in Hainan through practical experience. The end of this article gives 

suggestions and countermeasures for social capital to participate in comprehensive land consolidation in Hainan 

when digging out some problems of practical experience, which are simplifying approval procedures, completing 

relevant policies, expanding the channels for social capital using other good practical experiences in 

comprehensive land consolidation. 

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