On The Risks And Precautions Of Government Financing Platform

In dealing with international financial crisis and maintain stable and rapid economic growth in the immediate needs and national policy support to guide the dual role of various types of levels of government financing platform, have unveiled. Financing platform, to promote the vigorous development of the local infrastructure in order to prevent the rapid decline in economy has made a positive contribution. But there have been some much-needed high degree of concern and resolve potential risks. Therefore, it is necessary in-depth study of government financing platform, proposed the government financing platform for operational risk prevention measures, to provide advice and reference for the follow-up financing of the government financing platform.Departure from the mode of operation of local government financing platform, that the essence of the platform loan is the banks and the government as a counterparty in order to analyze the potential risks of the government financing platform, and the corresponding interpretation of the regulatory objectives and regulatory approach of the CBRC on the platform of government financing. Land Reserve Center as a local government indirect carrier for the bank loans, just as the analysis of representative case of government financing platform for risk prevention.Based on depth investigation and comparison of the development history of the domestic land reserves, and land reserves operation mode in developed countries, analyzes the three questions in domestic land reserve financing:financing channels for a single, higher financing costs, financing risks. Then W City Land Reserve Center as a case study, on the one hand, from the positioning and functions, funding sources and financing models, financial condition, operating conditions, to analyze its mode of operation. On the other hand, quantitative analysis of the specific projects of land reserves, mining land reserve project risk influencing factors, such as the economic environment of the W City area, W urban real estate supply and demand situation, W urban land supply situation and development trend, W City District real estate prospects, the proposed transfer of land prices in recent years and other factors will affect the land reserve project solvency.Thereby from the risk of cross mixed use of loan funds, the risk of purchasing and storage of land transfer time is the uncertainty, liquidity risk, the risk of included in the government financing platform to manage, pointed out that the risk of W City Land Reserve Center and the corresponding risk prevention measures.Finally combined with case studies, analyzes the risks inherent in the government operating land as an asset, and corresponding proposed at the legislative level, the regulatory levels of risk prevention recommendations, including the amendment of the existing "budget law" to define local government can become liabilities of the main, to take tough regulatory stance to improve the bargaining position of the banks and the local governments. And pointed out that by means of their own or independent issuing bonds to change the subject and the debt structure of the liabilities, in order to resolve the defects in the main structure on the liabilities of government financing platform, provide recommendations for follow-up financing of the government financing platform.