With the rapid increase of China’s urbanization rate and the continuous expansion of city size,financing of urban construction has become a very obvious issue.Being a medium-sized city,Yantai has already set up its goal of building itself into a domestically first-class coastal city,which should better solve the financing issue of urban construction.First priority should go to infrastructure construction,which is the general principle.Governments should be in charge of the urban construction input for public welfare,while markets do profit and quasi-profit urban construction input,and further broaden financing channels.It should increase government financial input,actively guide social investment,accelerate the development of banks and small-loan companies,and attract the investment of overseas Chinese.As for the construction of medium-sized cities,it should have scientific plans,insist to realistic and people-benefited principle,use urban construction funds cleanly,and strengthen the supervision.