Analysis On Problems Of The Local Government Investment And Financing Platform And Risk Prevention Research

In recent years, the amount and scale of the local government investment and financing platform expends extremely. It has a long history for the local government’s construction of investment and financing platform to strengthen urban build and infrastructure. But the platform did not play a leading role until2008in dealing with the financial crisis. In early2009, the People’s Bank of China and China Banking Regulatory Commission jointly promulgated Principle of further strengthening the credit structure adjustment to promote national economic development. The Principle put forward "support conditional governments to form investment and financing platform, issue corporate bonds,medium-term bills and other financing tools, so as to broaden financing channels of the central-government investment projects ", which has been regarded by local government as acknowledgment and encouragement. So that the local government formed a large number of platforms. According to the information disclosure by the end of2010, China had more than9800local government financing platform, whose balances loans were close to10trillion.Although the platform has a positive effect on expanding domestic demand,maintaining economic growth.making up for the shortage of local government financial capital and strengthening local infrastructure construction, such a massive increase in short time has brought potential risks. The problems and risk prevention of the platform shall be paid much attention by government departments.This thesis studies the local government investment and financing platform e from the following three aspects. First, gather information to reveal the current situation of local investment and financing platform, analyze the existing problems and find out the deep-seated causes; Second, select correlated indicators combined with the characteristics of the local government investment and financing platform from the macro, medium and microscopic levels, then use extension matter-element model to evaluate the platform’s risk status. Finally, provide policy recommendations for development and risk prevention of our local government investment and financing platform.