Research On Loan Risks Evaluation Of Chinese Financing Platform For Local Government

At the end of 2008, with the State 4 trillion economic stimulus plan and taking a positive financial policy and a liberal monetary policy, varieties of local financing platform surged, and a large portion of the funds flowed to it. At present, financing platform for local government in our country is still in the primary stage, the back of excessive debt and nonstandard operation has tremendous risk, which causes state agencies and all levels of public concern. This paper studies the loan risks evaluation of Chinese financing platform for local government, provides reference of the future development through thinking about the status quo of the local government platform for financing.Mainly based on Item Division Theory and Debt Risk Management Theory, the core ideas of this research are to discuss the debt scale in two aspects——bank loans and issue bonds; on the basis of its resources and transmission of the debt risks in some detail, to use the business data of seventy-one urban investment enterprises to evaluate the existing risks from the assets, liabilities, income and profits; and to raise some proposals on how to resolve debt risks of Chinese local government financing platform, from the government, banks and enterprises themselves respectively.Mainly adopt qualitative analysis, quantitative analysis, comparative analysis and normative analysis, the article concludes there are some risks that local governments raise money through the financing platform, but not out of control. Therefore, regulatory authorities should give an active support and formal guidance, in order to make more financing platform companies focus on un-public interest items, master more self-creative function, and better serve economic construction.