Abstract: The new urbanization in China should insist on the market-oriented and government-guided development mode and the private capital should be activated. It is necessary to introduce the investment and financing mechanism with actively participated private capital to solve the fund problem during the urbanization, which also offers a new development opportunity for private capital. At present, the introduction of private capital into urbanization is faced with such obstacles as local governments relying heavily on land finance and over-debt, public investment squeezing out private investment, private investment being difficult to find access and being low in enthusiasm, thus the degree of private capital participation in urbanization is not high and its role is limited. In order to promote the participation of private capital in urbanization, such measures should be taken: breaking down the government-guided investment and financing mode, restraining the short-term behaviors of local governemts, improving the public-private cooperation mechanism, lowering the access threshold for private investment, extending the channels of private investment, improving the environment for the existence and development of private enterprises, and removing all kinds of worries of private investment.

Key words: new urbanization; private capital; access threshold; public-private partnership