The Way To Nomocracy Upon Regulating The Financing Platform Of The Local Government

since1988, in order to circumvent the rule that local government has not been permitted to borrow money in Budget Law and some relevant laws and regulations, as well as settle the problem of urban construction funds, local governments were set up a platform for financing company (for short the platform company). The local government financing platforms, including different types of urban construction investment companies, urban construction development companies and urban assets management companies which set up by local government. These companies made their assets and cash flows in accordance with the financial standards through transfer of land and other assets in hope of making the urban development and public utilities better.On basis of referring to the relevant documents and practical survey, the article made a comprehensive analysis of the local government financing platform about its bud and the remainder of the development process while looking into the future development and the path of it. As business entity, the platform is controversial for its legal disputes at the beginning of establishment. In addition, there were still problems like the registered capital contain less monetary capital, non-standard funding, non-business charge of assets registered in capital of the company, some platform company never engaged in profit-making business so that they independently bear civil liability. Operating of platform companies also have been with a lot of problems such as the legal recognition of the local government providing credit guarantee rights and security guarantee, etc.From the aspect of corporate governance, the existence of problems like imperfect structure can not be neglected. In order to solve the problems to avoid the financial risk and government financial risk by non-standard operation, it is the high time that we study this theme. The author advised solutions to standardize the company’s rule by law path according to practical work. In the long run, only reforms about mechanism of financial system can help us to standardize the development of platform companies, The state should allow the provincial local government debts for a local government debts can collect the social idle funds to serve the public infrastructure establishment. Under those circumstances, the company may be a media for infrastructure construction. The key point is, the local government should have an issue plan to make sure the quantity and scale could not too big, or that will bring about risk to economic development. For now, we are supposed to make the companies to be standardized and rule by law from the aspect of categorized management with the full specification for the conduct of registered capital and corporate governance improvement.