On The Development Of Local Government Investment And Financing Platform Development

since the reform and opening up,China’s economic system and operationalmechanism has undergone tremendous changes. Local governments gradually becomeindependent economic actors. They are seeking for certain investment and financingneeds. On this basis, the local government investment and financing platformenterprises come into being and become the main force of the local infrastructure. Atthe same time, the local government investment and financing platform plays animportant role to deal with the financial crisis, to promote economic developmentand to fight against natural disasters. They also provide important support to improvepeople’s living surroundings and to protect our ecological environment as well aslay the foundation for the sustainable development of economy and society.This article studies on the historical context of the emergence and developmentof China ’s local government investment and financing platform and makes furtherresearch work on the background and conditions of local government investment andfinancing platform which experiences rapid development in recent years. This paperfocuses on regulatory mechanism of the operation mode of China ’s local governmentinvestment and financing platform taking financing mechanism, investmentmechanism and risk prevention as its research center.. According to the operation ofChina ’s local government investment and financing platform and combining with theactual construction and financing of the Hengshan county government investment andfinancing platform, this paper analyzes its main problems and the principal risks.Appropriate suggestions and measures to this problems are recommanded. Its purposeis to show the status quo of China ’s local government investment and financingplatform especially in Hengshan county and to give fair assessment of the significanceand role of China ’s local government investment and financing platform toobjectively reflect the main problems and the main risk of the local governmentinvestment and financing platform. The author makes efforts to recommend advice tostandardize and improve the local government investment and financing platformfrom both theoretical and practical aspects and further to provide a reference for localgovernment investment and financing platform especially in Hengshan countygovernment investment and financing platform. Meanwhile, on the basis of the case study of the investment and financing platform made by Hengshan government, thepaper sets forth the shared deficiencies and operation practices existing in the localfinancing businesses of government of different levels in different areas. It is expectedto provide experiences and references to the construction of financing platform ofcounty government in our country.