2014 City shantytowns transformation of the task of up to 40305 units, a large amount of shantytowns, the government has limited financial resources, funding problems have become a bottleneck restricting the transformation of urban shantytowns. To this end, the city has developed a "Xining to encourage and guide private capital to participate in the work of shantytowns plan" to encourage private capital to support shantytowns. According to the introduction, I will encourage and guide private capital to participate in shantytowns, as a key content of deepening reform to promote, in accordance with the government led, market operation, financial support, rolling development model, to encourage and guide private capital to participate in shantytowns through direct or indirect way, which becomes an important means to solve the bottleneck problem in shantytowns. Encourage and guide private capital to participate in the transformation of shanty towns, will strive to achieve the country to fill a piece, the platform into a piece, a piece of business, the policy to make a piece of personal financing to raise a new mechanism. In order to encourage and guide private capital to actively participate in shantytowns, will also increase financial support for the shantytowns of private capital participation, and gradually incorporated into the annual plan of the government, enjoy the finance of the shantytowns of various types of subsidies, subsidies by the state capital investment, land transfer income and other forms, to encourage and guide private investors reasonable expansion of investment, reducing the risk of private investment. At the same time, will also increase the tax preferential policies and support efforts to implement the loan of financial institutions, providing a certain profit space for the development of enterprises, enhance the participation of private capital in the shantytowns project confidence, further accelerate and promote the shantytowns, thus boosting the common development of the economy and society. Encourage private capital to join the shantytowns will continue until 2019.