The Research On The Development Of Investment And Financing Ways In Wangcheng Economic Development Area Construction And Development Company

After the sub-tax reformed in 1994, the local fiscal revenue significantly reduced.At the same time, the local fiscal gap was increasing in the background of accelerating economic development. Because of the outbreak of the financial crisis in2008, Chinese government launched the "4 trillion" fiscal stimulus to sustain economic growth, and adopted a moderately loose monetary policy. While the bond market ushered in prosperity, local government opened massive UDIC, and issued bonds by financing platform of UDIC. But the current investment and financing ways of local government financing platform is relatively simple, and financing is difficult.Wangcheng Economic Development Area Construction and Development Company, as investment and financing platform of Wangcheng economic and Technological Development Zone, which current scale of financing grew rapidly.Investment ways mainly included land development and consolidation, urban infrastructure construction. Financing ways included bank loans, corporate bonds,joint development and development rights auction. But relatively the ways of financing and investment were small, and most investments were non-profit type,which was not conducive to the sustainable development of Wangcheng Economic Development Area Construction and Development Company.From the theory of investment and financing mode, the paper firstly summarized the theory on investment and financing, investment and financing platform,introduced the traditional and innovative financing models and financing risks related research developments. Then it made a brief introduction to the concepts of investment and financing platform, and in detail introduced the status, the investment channel analysis, financing analysis, analysis of the external environment and internal environment analysis of Wangcheng Economic Development Area Construction and Development Company. And it not only proposed the problems in the process of investment and financing, but also analyzed the causes of the problems. Furthermore this paper reviewed the investment and financing strategies of Wangcheng Economic Development Area Construction and Development Company, and innovative investment strategies and financing strategies were put forward. Finally the safeguards were proposed from the perspectives of the governments, financial institutions and platform companies.