Zhuzhou City Development Group Financing Risk And Prevention Research

With the increasing demand for urban infrastructure and other public goods, and the one-sided view of achievements of local government,municipal building task of local government surge. But after the reform of the national tax system, facing increasingly onerous task of the municipal building, local finance gradually become stretched. Coupled with restrictions on the legal aspects of local government financing acts, local governments must seek new ways to solve the economic and underfunded contradiction. Local government financing platforms have emerged in this context. Local government financing platforms appear to play an important role in the postponed local government financial pressure,promote urbanization, and other aspects of the financial crisis. However,in the course of development, local government financing platform appear a series of problems, like excessive debt scale, too single financing channel, not sound governance structure and so on, resulting in a higher risk of financing. This is not conducive to the healthy development of government financing platform. This article in Zhuzhou City Development Group for the study, on the basis of the current status quo of local government financing platform, analyzes the presence of the syndicate financing risks and the generation mechanism of risk, and learns from the development experience of domestic and localgovernment financing platform. This provides policy advice for financing platform development of China.This article mainly adopts the literature method, comparative analysis and other research methods, trying to identify the main risks that currently exist on the financing of Zhuzhou City Development Group,and propose practical financing risk prevention measures to provide appropriate protection for the further development of the City Development Group. This article first describes the origin, development and current situation of local government financing platform, and reviews the theories of risk management, to prepare for the study below; Second,analysis of the current financing situation in the City Development Group,analysis of the main financing risks of its existence, and to discuss mechanisms to generate these risks;Then introduce the advanced mode of financing, obtain relevant experience of enlightenment;Finally, on the basis of risk analysis and learning from the advanced mode of financing,proposed the corresponding countermeasures against risk.Through research, the main financing risks exist in the City Development Group is liability risk, channel risk, market risk and policy risk. The generation mechanism of these risks is the fiscal imbalances of local government; particularity of local government financing platform′product and normative operation of local government financing platform.As to the mechanism of the financing risks, combing to the foreign anddomestic experiences on financing model, and rising up the measurements to the four kinds of risks.