Study On Financing Behavior Of Local Government Investing And Financing Platform Based On Government Guarantee In China

While Chinese local government investing and financing platform has played ahuge role in infrastructure construction and local economic development, but there aresome problems need attention, for example, the debt financing scale of the localgovernment investing and financing platform companies is the rapid expansion,operation is not standardized; local government regulations or in the provision ofguaranty, the risk of sinking is increasing; the risk awareness of some banking financialinstitutions is weak, the lack of credit management for the financing platformcompanies. Therefore, this article intends to systematically study the local governmentinvesting and financing platform for financing behavior and government guaranteeinfluence mechanism on local government investing and financing platform forfinancing behavior,which has very important theoretical and practical significance tonormative local government guarantee behavior and mechanism of land use, reducingthe risk of bank credit,protection of Chinese local government investing and financingplatform and financial market is health, sustained and rapid development.The main research work of this thesis is embodied on the following aspects:Firstly, using descriptive statistics method, summaries the Chinese localgovernment investing and financing platform development present situation, includingthe number and evolution process, investment projects and their features, experienceperformance and other aspects.Secondly, using descriptive statistics method, summaries financing behavior andcharacteristics of the Chinese local government investing and financing platform, basedon the debt of Chinese local government、the financing channel and financing guaranteemechanism of financing platform,found that the financing channel is a single of Chineselocal government investing and financing platform, bank loans is the main financingchannels of the investing and financing platform, and the indebted rate of localgovernment is higher, there are certain debt risk.Thirdly, on the basis of previous research results, under the assumption conditionof local government financing platform risk neutral、banking risk aversion,we build amathematical model, theory on government guarantee influence mechanism on localgovernment investing and financing platform for financing behavior.The results showthat: the investing and financing platform is more cautious in land mortgage conditionsthan in the implicit government credit guarantee conditions;the balance loan amount between the investing and financing platform and bank will be increases with thegovernment recessive guarantee performance rate or mortgage the land preservation rate;when the government recessive guarantee performance、 mortgage rates landpreservation rate、or investing and financing platform for business success probabilityclose to1, the balance loan amount between the investing and financing platform andbank will tend to infinity. The results of this study can reasonable interpretation thephenomenon of Chinese local government investing and financing platform forexcessive debt and the banking credit risks aggravating in a certain extent.Finally, based on the above-mentioned research results, put forward the policyproposal to perfect the development mode of Chinese local governments investing andfinancing platform.