Study On The Risk Of Qinghai Local Government Financing Platform Loan And Warning Mechanism

The local government financing platform is a product of the specific history.Beginning with “the decision of economic system reform” through by the thirdplenary session of12,1984.The urban economic system reform start with“decentralization”,“profit distribution”,“separation” eta. Release energy in theChinese market economy, keeping the good momentum of economic growth speed.The reform of economic system is comprehensive and complex, and its fundamentalpurpose is to achieve the basic role of the market in the allocation of resources, butthe development of the financing platform of the government or local government inChina economic development, improving people’s livelihood, administrative intentionin the management is closely, that is the need of reality. The implementation of the taxsharing system reform in1994of our country, separating the management of revenueand expenditure in the local tax or national tax. The central government’s financialstrength has been enhanced, but the “powers” and “financial power” of localgovernment don’t match the intrinsic motivation so that the local governmentdeveloping their financing channels. Influencing by America’s subprime mortgagecrisis, the “four trillion” economic revitalization are put forward, but most of thefunds needing local government raised. In order to fill the funding gap, the financingPlatform as an important tool by the local governments. The local governments beganthe exploration practice of substantial, while the central acquiescence and issuedthereafter supporting policies for its fast development created the objectiveconditions.The local government financing platform plays an active role in supporting theconstruction of key projects and coping with the international financial crisis.Especially like Qinghai province or other underdeveloped areas. It still be leveragedsocial funds to support local entity economy development as an important means inthe future certain period time, but the ballooning debt balance local governmentfinancing platform and operation mechanism is not standard, more and more localfiscal solvency risk. How to implement the local government financing platform to doreal and stronger, ensuring the local government financing platform for the orderlyoperation, have important realistic significance for stabling the rapid development onthe local economy, social stability and orderly harmony. These thesis through analyzing the relevant policies and the status of local government financing platformin Qinghai province, that combing the development of the local government financingplatform. It shows that the influencing factors and the existence prominent question inthe local government financing platform. This thesis based on the relevant data to setup the Logistic model, puts forward the idea of stress testing and quantitativeempirical analysis. Put forward some suggestions to accelerating the construction oflocal government financing Platform, and exploring the establishment of newfinancing mechanisms.