Research On The Management Of Investment And Financing Platforms Of Local Governments In China

In recent years,our country's economy has gained rapid growth and the urbanization process has gradually sped up.In 2015,the urbanization level in our country reached 56.1%.It is estimated that up to 2050,if the urbanization level of our country estimates to reach about 70%,the growth rate shall be close to 0.5% per year.In order to reach this goal,our country needs to invest large amount of capitals in infrastructure sphere.Our country's local government needs to make more efforts on municipal infrastructure construction financing aspect in the future.Subsequently,financing issues of local government will be more complex.In 1994,our country implemented reform tax system,built basic system framework of local fiscal distribution relationship in market economic conditions.Reform tax system divided central and local tax scope,regulated local government's positivity and promoted local economic development.But reform tax system decreases local fiscal revenue as well as improves central fiscal revenue.Local fiscal expenditure does not decrease correspondingly but increases while the local fiscal income decreases.With the economic development,local government needs to guarantee a certain proportion of fixed assets investment,needs more capitals to make urban infrastructure construction.Local government financing gap becomes serious day by day.Government investing to set up local financing platform to obtain construction funds is the major method for local government to make up insufficient finance.In terms of our country's current local financing platform structure,county-level platforms occupy more than 70% of the total platforms.Although financing channel has been expanded,the platform debt is still majored by traditional bank credit mode.Platform loan brings increasing default risk for local debt.In terms of the entire platform loan operation procedure,our country's local government platform has multiple issues in aspects of property structure,governance structure,financing channel,capital structure,operation efficiency,management mechanism.Blind planning financing scope,expanding financing amount and expanding debt scope of financing platform will trigger a series of financial risks,legal risks and bank credit risks.Based upon various kinds of drawbacks of the above-mentioned platform financing loan,this paper starts from links of transforming government function,normalizing financing platform organization management mode,completing local government performance evaluation mechanism,expanding local government platform financing channels,perfecting financial tax system and speeding up local government financing platform's marketization operation procedure and proposes reasonable suggestions for the future direction of the platform company.This paper takes Kunming JT financing platform as case,makes introduction and analysis on aspects of emergence background,organization structure,financial status and operation mode,thus further introducing the current status and issues analysis of our country's local government financing platform companies.Aiming at these issues,this paper proposes feasible suggestions for platform company's governance: transforming government function,creating management mode,completing financial tax system,speeding up local government financing platform marketization operation progress,promoting enterprise management and operation of local government financing platform.This paper aims at clearly displaying the risks and drawbacks in local government platform and attempts to provide some decision basis for our country to govern management issues in local financing platform.