Strategy Of Constructing The Government Financing Platform Based On The View Of Sustainable Development

Construction, such as infrastructure construction,which local government sets up financing platform to carryout has had a long history.But till 2008 it began to play amajor role in dealing with financial crisis. At the beginningof 2009,the people’s Bank of China and China BankingRegulatory Commission jointly issued“Guidance onstrengthening the adjustment of credit structure topromote steady development of the national economy”. Inthis Guidance,“To support conditional local government toset up investment and financing platform, and to issuecorporate bonds and medium-term notes, which canexpand the matching funds financing channels of theinvestment projects of central government”was putforward, which was regarded as affirmation andencouragement of central government to the financingplatform of local government. In recent years, the amount of financing platforms and financing scale of localgovernment are increasing rapidly. But for a long time, inraising medium-term and long-term construction funds,local governments at all levels has been facing theproblems of single financing channel and low degree ofindirect financing. Especially after the second half year of2008, the investment enthusiasm of infrastructure of localgovernment was raising, which made these contradictionsmore prominent. Therefore, local governments at all levelsall innovated investment and financing modes and set up agroup of powerful financing platforms. They also raisedconstruction funds by means of stock transfer, bondissuance, bank loan, trust and so on. Some financingplatform companies of local government were onlyresponsible for financing, but not responsible forinvestment and recovery, and the repayment mainlydepended on the financial strength of the government andthe project returns. In such a state, debt of localgovernment expanded quickly, and the crack of any linkwould lead to government debt crisis. So it’s important forlocal government to build sustainable financing platform.This paper studies the construction of the government financing platform on the basis of the perspective ofsustainable development. Chapter 1 introduces thepurpose and significance of the selection. Chapter 2elaborates the relative research at home and abroad.Chapter 3 describes sustainable development and how toconstruct sustainable government financing platform.Chapter 4 based on the five aspects of fund operation toanalyze the sustainability in the operation of thegovernment financing platform. The five aspects arefinancing, investment, construction, management and debt.Chapter 5 gives the research of some financing platforms,including Shanghai mode, Kunming mode and Chongqingmode. It also summarizes the key points of constructingfinancing platform. Chapter 6 is a comprehensive summaryof this paper.