Research On The Financing Platform Of Local Government’s Debt In China

In recent years, the financing platforms of local government in China grow in large numbers, they invested a lot of energy in the city infrastructure construction, which play an important role in stimulating domestic investment and consumption growth. However, the local government financing platforms in the development process also showed a range of risk factors. In2012February, China Banking Regulatory Commission issued the "guidance on strengthening risk supervision in the local government financing platform in2012",which put forward some advices for sustained release the financing platforms of local government’s debt risk. Therefore, we can see that the control of local government financing platform debt risk has been valued by our government, this article is to be discussed in this background.Firstly, the research background, the significance of the topic are introduced one by one, at the same time as the idea of writing this article, the positioning of research methods,writing of the innovation and so on.Then talk about the theory of public goods, project finance theory, financial discipline in the theory of risk management, credit risk theory review, laid the theoretical foundation for the full text of the study. On this basis of this, the article introduces the development situation and basic characteristics of financing platform of local government in china. Then,be aimed at the debt risk of local financing platform, the article reveals the possible harm result and analysis of the cause of the debt risk of the financing platforms of local government in China. Next is the empirical analysis of financing platforms of local government’s debt risk, first determine the index to measure the risk of debt, and then by combining static analysis and dynamic analysis methods, at the same time segmentation analysis of debt risk of every area of our country have been done. Finally, in view of the existence of financing platforms of local government’s debt risk,this article puts forward some countermeasures such as improve the local government fiscal revenue and expenditure structure, gradually open the local debt issuance regulation, give full play to local financing platform for the local financing platform, strengthen supervision and so on,in order to produce a certain reference function to stabilize the local financial and improve the local government debt management.