The Issues And Solutions Regarding Local Government Financing Platform Business Expansion Of Ningxia Branch, CDB

Nowadays, with the acceleration of modernization and industrialization in China, the local government in every layers need large mount of fund to improve their public service. Under the circumstances of lacking both the financing channel and fund invested in infrastructure, the local government tried to, under the guidance of development financial theorem, establish the financing platform to facilitate the loan. Therefore, financing platform loan in certain scale, derived form the facility, has surfaced. At the very beginning of the establishment, the financing platform can combine the bank funding strengths, governmental credit strengths and market force, to support the development of weak chains, such as urban construction, public service, and play a positive role in terms of fostering the local economic expansion, enforcing the infrastructures. Prompted by interests, Agricultural development bank of China and some other commercial banks stepped into local government financing platform, causing this media some issues.This article investigates the government financing platform in Ningxia, its management structure and operation flow. Base on that, this thesis analyzes the economic contribution and existing issues that relate to local government financing platform, hence puts forward some solutions and suggestions that CDB Ningxia branch worked out with regard to government financing platform’s risks dissolution, development on a regulated basis. This paper aims to provide some references concerning government financing platform development in Ningxia, and with the help of financing platform business, to safeguard the economic expansion in Ningxia.