Study On The Risk Of Local Government Investment And Financing Platform

is growing quickly, and the funding gap exists. In order to break the bottleneckof funds, local governments began to land allocation and injection of assets to set up aplatform for investment and financing, and financing for urban infrastructureconstruction. All levels of government have to form a government investment andfinancing platform to compensate for the lack of financial funds; but it has a series ofrisks, such as single channel, finance, low solvency. The three main parts of theoperation of local government investment and financing platform: the financingaspect of investment links and servicing aspects of risks that may arise at the sametime the Government’s investment and financing behavior is closely related to therunning of the economy as a whole, local government investment and financingplatform for the operation of the risk may spread to the entire economic system, sothe liquidity risk and credit risk may happen. The local government investment andfinancing platform is dependent on the resources owned by the Government, it canachieve industrial restructuring, promote economic development.Starting from the basic situation of the local government investment andfinancing platform, summed up in the development process appear as a singlefinancing channels, the pressure of financing; the solvency low; system is imperfectand the risk of meaning and other issues. Secondly, to explain national localgovernment financing of investment and financing platform mode. Again, study onthe causes and risks of the local government investment and financing platform in thedevelopment process, and referring to the corresponding risk prevention mechanism.Finally, using investment and financing platform of the Shanghai MunicipalGovernment as a case to study and to analyze actual cases to deepen theunderstanding of the effects of the operation of the local government investment andfinancing platform.