Financial Leasing Project Of Local Governmrnt Financing Platform And Risk Management

According to the development of Chinese urbanization target, large-scale infrastructure investment is necessary.Local financing platform has become a main subject of investment in infrastructure construction.And infrastructure construction, as a people’s livelihood project, is a project needs large-scale and long-time return investment.Nowadays, the bank credits from local financing platform is limited by national regulation, at the same time, land price is affected by policy very much. So the financing lease becomes a modern financing pattern for the construction of local financing platform infrastructure to provide the long-period and low-cost capital resource.Because of that, there are unprecedented development opportunities for financing lease industry in our country. But, at the same time, high debt ratio, heating up of competition, lack of professional talents and imperfect risk control system also bring big challenge to financing lease business.How could financial leasing company do a good job in the business of local financing platform and effectively prevent and control various risks at the same time? The research about these two questions has important practical significance on speeding infrastructure construction, renovation of shantytown and urbanization. So, firstly, on a view of a worker in a financial leasing company, we will use theory of risk management and description of financing lease and local financing platform to show the procedure of how a financial leasing company operates local financing platform project. Then we will compare the common risk feature in operation of financing lease to summarize the special risk feature which local financing platform project.. Secondly, on a view of a financial leasing company, we will provide detailed risk management measures by analyzing a practical case of Nanjing Pukou District Economy Development Company. At last, on a view of relevant regulators and local government, we will give our advice of risk management.