The Research On Legal System Of De-administration Of The Local Financing Platform

Since China carried out tax distribution reform in1994, the distance between local administrative power and financial power has gradually widened. However, due to the restrictions of laws such as budget act, guarantee law and so on, on local government running debt and financing through foreign guarantee on its own behalf, great bottle-neck of funds appeared when local government carries out local construction, which results into the arise of local financing platform. As the middle power for local government to resolve the conflict between administrative power and financial power, local financing platform is established with the assistance of quality resources of local government. It broadens investment and financing channel of local government, improves the overall capacity of local government on employing various resources, makes the operation of city infrastructure construction project more marketed and professional. So its development receives strong support and policy guidance from the government. The administrative is a management model which made the bureaucratic privilege under rights-centric.It emphasize technical management, while ignoring the development of the own class’s characteristics and advantages. De-administration is a Word group which corresponding to the administrative. It request dilute administrative bureaucracy, highlighting the main developments and dominant position for their own, and to prevent blanket administrative departments. The features is to decide affairs and decision-making by the class itself, and responsible for these matters.Researched the establishment, management, and operation of many local financing platform companies, we can find there exists many administrative characteristics in local financing platform companies. Such as irregularity of registered fund, imperfection of corporation administrative structure, unclearness of liability subject, irregularity of financing operation procedure, and so on. It has been increasingly evident, which brings obvious risks and crisis to local development. These risks are of many aspects, and are embodied in various links of company operation process: fund-raising depending too much on commercial loan; funds being mainly put into unprofitable projects; and there being no stable source for fund return and repay. If left unsettled for a long time, these problems are likely to impact the long-term development of local infrastructure construction, or even will become a major threat which binds financing risks and fiscal risks together, eventually cause a series of economic and political problems, and affect social stability.As a result, development of local financing platform attracts great attention of domestic and foreign experts and scholars and relevant departments. It is necessary to understand the characteristics and problems of Chinese local financing platform companies in debt repayment in combination with the real situation of local financing platform companies of different types and different levels in China. We need analyze the characteristics and development of company in different processes including establishment, operation, refinancing debt, discusses problems of local financing platform companies in debt repayment responsibility, and then point out the administrative problems existing in local financing platform companies from such aspects as investment, decision-making, financing, debt repayment, and so on. Combining with economic law, company law, and administrative law, and learning from the experience of Europe and America, Singapore, Japan and other countries in establishing public services, we find some measures to the administrative problems from a legal point of view, including strict supervision of non-monetary contribution, the organization set up for the appointment, removal and self-management, self responsible for autonomous decision-making and implementation of the project financing debt service, etc. Through these measures, the relationships between government and local financing platform in local infrastructure construction will be straightened out, thereby preventing risks of paying off debts. Then local financing platform companies will play an active role in promoting the growth of local economy, and financial resources of the government.