Assessment Of Wuhan City Construction Investment And Development Corporation's Debt Repayment Ability And Associated Risk

Local Government financing Platform rely on local government credit financing platform for infrastructure projects, and promote China's urbanization process. In 2009, with the national "expanding domestic demand, to maintain growth" and a series of economic policies to stimulate the introduction of local government financing platform for rapid expansion, led directly to local government credit as the source of government debt continue to run up debt. Resently, the country's local government debt amounted to a large number, the event of such a huge debt default will lead directly to China's sovereign debt crisis and financial crisis. Therefore, the study how to resolve the debt of local government financing platform risk becomes of great practical significance.This paper draws on previous research excellence, Wuhan City, the largest government financing platform - Wuhan Urban Construction Investment and Development Group Co., Ltd. (hereinafter referred to as the city of Wuhan to vote), for example, its solvency and risk analysis. First, the analysis of platform for the development of China's local government financing through the process, the combined domestic and international financing platform for the government on the basis of theoretical studies, described the research background and significance. Then vote by the city of Wuhan overview of the company operation, operations and debt sources, revealing their credit relying on local government infrastructure projects in the substance. Secondly, from the revenue and expenditure situation of Wuhan City, Wuhan City to vote the stock of debt as an object, measure its long-term solvency, lack of long-term solvency draw conclusions. Again, from a financial risk, management risk, solvency risk and compliance projects initiated four risk factors, revealing the cause of its solvency is insufficient. Finally, from the central government, local government, Wuhan City investment and commercial banks, four have worked out a series of targeted and feasibility of risk management measures and recommendations to resolve the risk, the national platform for the ongoing financing of local government clean-up work to provide information and reference...