Research On The Status And Problems Of Suzhou Government~s Financing Platform

In this paper, Suzhou City, for example, through the establishment of localgovernment financing platform, positioning and function, mode of operation, sources ofcapital, capital investment, financing methods for qualitative analysis and statisticalanalysis, the formation of local government financing platform operators a comprehensiveunderstanding of the status quo. On this basis, Suzhou City, local government financingplatform itself brings problems as well as potential risks are analyzed, and from the centralgovernment, local governments, banks and financing platform perspective, presented tolocal government financing platform Suzhou health orderly development of a full range ofhighly appropriate policy recommendations.Through this study, the following conclusions can be drawn: First, local governmentfinancing platform has four basic functions, including infrastructure (here including basicindustries), state-owned assets to important areas of industry and financial investment toachieve Government as well as investment and other strategic intent. Where previouslytwo functions of local government financing platform ’s core functions, the latter two arethe top two functions of local government financing platform for the extension andexpansion. Second, in recent years, local government financing platform Suzhou inSuzhou municipal levels of government under the leadership of the economic and socialdevelopment of Suzhou raise a lot of money to ease the financial pressure on local SuzhouCity, Suzhou City, accelerated industrialization and urbanization process, improvingpeople’s livelihood. But there has also been a lot of problems to be solved, the mainplatform for the establishment of some confusion, a serious shortage of capital; platformguarantees the lack of legally binding mechanism; platform for corporate governancestructure is imperfect; financing channels for a single platform. Third, improve andstrengthen the local government financing platform Suzhou core of risk control in twoaspects: First, starting from the platform itself, Suzhou local government financing for investment and financing platform for the operation and daily operations of the operationalrisk, financial risk, credit risk, market risk, to establish a scientific and effective controlsystem; Second, starting from the macro to build a good macro risk control strategysystem, ranging from financial institutions, local government Suzhou starting to buildorganization, system and information platform, from the overall risk control. Risk controlshould be based on prevention, early identification of risks as much as possible, as earlyanalysis, early prevention, early treatment to avoid the risk of failure investigation andpreventive measures, and to the platform unnecessary disputes and losses.