Risk Control Of Investment And Debt Financing Platform Of The Government Of Shenzhen

Investment and financing platform of local government in the reform of tax sharingsystem reform, the central and local government investment and financing system inChina, and in recent years has moderately loose monetary policy and othercomprehensive background, stable and made outstanding contributions to thedevelopment of public investment, improve local government infrastructure andsupporting facilities and the city against the global financial crisis, promote economic.But because of its financing scale expansion too fast, financing structure imbalance,single source of funds, funds into the unknown, hidden potential debt caused huge debtrisk has caused the central government, experts and scholars, the social public widelyconcern and attention. In view of this, how to clarify the relationship between thecorporate government and the investment and financing platform, actively regulate localgovernment investment and financing behavior, prevention and control of the localgovernment investment and financing platform debt risk, has become a research topic inthe current one has important practical significance.This paper reviews the literatures about the local government investment andfinancing platform and its risk management, basic theory and differentiates from thepublic goods theory, project, elaborated our country local government investment andfinancing behavior and the main risk policy, fiscal, financial, management four aspectsexist, focuses on the analysis of the financial system is not matching, the investment andfinancing system, from the local government investment and financing behavior is notcoordinated, the supervision of financial markets, lack of relevant laws and regulationsare not perfect and other reasons caused the local government financing platform risk.Secondly, based on the summary of the experiences and lessons of international authority,the local government bonds, risk control mechanism in the aspects, summed up thecentral government to the ghost ship of local government debt management, the marketrestraint mechanism and administrative command and control system is complementary,the strict control of the local government investment and financing behavior andfinancing scale, starting the risk early warning mechanism, to attract private capitalstrength, international management to resolve the Enlightenment of local governmentdebt risk related rules. The Shenzhen government financing Platform Co as an example,analyzed the operation situation and facing the risk of debt. Finally, according to the risk analysis of investment and financing platform of the government of Shenzhen, toestablish and perfect the risk early warning system in Shenzhen government investmentand financing platform, improving the legal system to promote the economic specialzone government investment and financing system reform, to attract private capital toparticipate in a moderate quasi operational and non operational project proposaloperation, the diversified investment expansion of government financing channels,regulate local government debt legal management, improve government debt informationtransparency, strengthen the NPC and the CPPCC and public supervision, furtherdeepening the reform of the tax system, increase financial transfer payment, thetransformation of government functions, optimize the financial sources of fundingchannels, appropriate reduction of local government investment field, the overall cutShenzhen’s government debt financing needs specific countermeasures and suggestions.