Research On The Local Government Investment And Financing Platform Company And Its Financial Environment

Local government investment and financing platform is a product of China’s fiscal system reform. After the tax reform in1994, the mismatch problem of income righta and duties in local government finance increasingly prominent, in order to solve the problem of insufficient funds, local government set up the financing platform. Since the inception of investment and financing platform, it plays an irreplaceable important role for the economic and social development.Enterprise cannot developleave without the financial support environment, platform company as an independent enterprise in the market also need financial support system to provide funding support for their economic activities. In addition, the main task of the platform company is finacing, this determines the financial environment will play a more important role in its development.After the outbreak of world financial crisis in2008, to stimulate economic growth, China’s government began to implement active fiscal policy and moderately loose monetary policy, the local government investment and financing platform become to get expansionary development. As the economic crisis subsided, and in the face of the growing of the platform company as well as its risk exposed, the policy reversals suddenly, started to check the accounts of platform company complete. Our country is also in the period of construction at present, the inportant role of platform company cannot be ignored, policy’s radical or conservative will all make the development direction the of platform company deviation, resulting in a series of problems. Obviously, in financial support to the development of the enterprise, the effects of policy on investment and financing platform is more significant. This is mainly because of the platform company failed to get rid of government intervention, can not fully in line with market. Thus building benign financial environment to promote the development of platform company specifications and platform company internal operations improvement and specification becomes very necessary. On this starting point, this article will also study.This article first analysis the investment and financing platform and its financial environment, and described the present situation of it. Then combing the development of the context, through the analysis of the correlation between investment and financing platform and its. financial environment, draw the conclusion of financial policy environment has great influence to the development of platform, and puts forward some suggestions accordingly.