The Research On Financing Management System Of Dujiangyan Xingshi Investment Company

Since the financial crisis in2008, governments of all regions have establishedsuch companies focusing on financing as urban construction&investment company,trading company and company on water to drive domestic demand, improveinfrastructure and maintain growth of GDP. These companies are called governmentfinancing platforms. As these platforms develop for years, it makes muchcontribution to development of public facilities and public welfare projects. At thesame time, many problems are revealed to the public such as over debt, low incomefrom its business and dependent most on local finance to refund. According to theaudit results from National Audit Office, by the end of June in2013, governments atall levels owe responsible debt of20.69trillion. Among them, the debt the localgovernments are liable to is10’88trillion, with the debt rate of113.4%. Accordingto the prediction from the foreign financial institutions, real debt of the governmentmay be higher than the sum. Little negligence may bring financial risk to the wholenation. Until June,2014, according to the statistical result from CBRC, the totalnumber of financing platforms at governments at all levels has exceeded10thousand, among which financing platform at county level accounts for60%. Howthe financing platforms develop in the following step---disappearing in the historystep by step or transforming successfully under the new policy of the government.Today, the economy growth slows down, as for how to solve great existingobligation, this paper proposes personal points of view and suggestions by analyzingdevelopment experience of local government’s financing. This paper chooses a county-level financing platform in the southwest China,which is transforming to manage materialization. By all-round analysis of financialrisk, management risk and policy risk of the enterprise, the paper proposes concretesuggestions and measures to prevent risk for improving enterprise financingmanagement system in a better way. Management of financing system of financingplatform is key in whether it can transform successfully. Only by managingfinancing system and solving financial deficit of enterprise can enterprise shake offthe vicious circle of borrowing money to return the debt before and the enterprisehave more vigor to carry out transforming aim proposed by local government to theenterprise. It can also give reference and concrete measures for transforming offinancing platform in governments at other regions around the nation. Therefore, theaim proposed by the nation will be realized that the management-oriented societytransforms into service-oriented society.