Research On Risk Control Of Government Financing Platform In

The local government investment and financing platform (LGIFP) is a kind of investment company which initiated and authorized by the local government for the city infrastructure construction and land development, it is also a financing platform used by the local government to avoid the legal provisions so as to promote the local economic and social development. Since the first LGIFP--the Shanghai "Jiushi Corporation" was founded in 1986, LGIFP begin to spread around the country. Especially in 2008, when a 4 trillion investment stimulus plan was introduced by the central government in order to response to the financial crisis, LGIFP has seen an explosive growth everywhere. With the acceleration of urbanization, LGIFP as a new thing, has become an important way of raising development funds, promoting local economy and speeding up infrastructure construction. Domestic scholars and many local governments have carried out various detailed studies and analysis on this, its importance is self-evident.Given the important role of LGIFP and increasingly tighter domestic policy environment it faced, how to optimize financing platform operation on the basis of a reasonable risk control becomes a new hot topic. The financing platform’s risk cause could be blamed on excessive government debt due to its eagerness to expand, it could also own to the platform’s development orientation and normative questions. Therefore, on the basis of combing the existing LGIFP problems, to reform and reorganize the financing platform has a very important significance, which could help to promote the healthy development of the financing platform, to give a reasonable control of government debt and actively avoid the possibility of financial risks.Based on this background, this paper combines the method of theoretical study and case analysis, firstly describe the background and connotation of local financing platform, introduce the origin of financing platform by theoretical concepts, put forward the general risks and problems of domestic financing platform development; Secondly, from the perspective of one financing platform, thoroughly analyze its existing problems and facing risks; Thirdly, on the premise of the above financial theory, put forward 8 specific measures to address the risks of local financing platform, including perfect the mechanism, enrich assets, strengthen supervision and set up collaborative risk control etc. Above all, the paper aims to provide a little information and reference for the LGIFP development and reduce its operational risks.