Research On WIZ Investment And Financing Platform

Since the end of2008, the number and scale of the local government investmentand financing platform showing the trend of rapid development. Local governmentinvestment and financing platform played a positive role in expanding domestic demand,maintaining economic growth, solving local government finances shortage, increasingthe process of building local infrastructure. However with its massive growth in such ashort time, it also brings potential risks. The government authority at all levels shall behighly aware of the potential problems and know about risk prevention measures.The study object of this paper is WIZ investment and financing platform,investigating from the following aspects:First, an overview of the theory;introduce some research and review literature onthe problems of local government investment and financing platform; describes theconcept, cause and the development of local government investment and financingplatform; understand the current status and the function of local government investmentand financing platform; List and analyze three successful local government investmentand financing platforms including Shanghai model, Chongqing model and Tianjinmodel to learn the positive experience.Second, introduce economic status of Changzhou and Wujin National hi-techIndustrial Zone(hereinafter referred as WIZ), focusing on the basic model and currentsituation of WIZ existing investment and financing platform for the basic mode ofoperation, make comparative analysis with the similar financing platforms ofneighboring area.Finally, through the above description of the basic concepts and fundamentalanalysis of the situation, find out the problems and the causes of WIZ investment andfinancing platform. The causes include lack of transparency of local government debtinformation, risk of excessive debt, lack of local government local government debt management mechanisms and the lack of debt risk awareness. In response to theseproblems, propose suggestion on optimizing WIZ investment and financing platform,such as correctly handle the relationship between government and the market，strengthen the government’s macroeconomic policy guidance and regulation, andimprove local government investment and financing platform management mechanism,to improve and strengthen, to speed up the information systems construction of thelocal government investment and financing platform，to open up new financingchannels.