The Research Of The Development Of Local Government Investment And Finacing Platform

Over the past twenty years,China has changed a lot,of which the urbanization process has developed rapidly.The local government investment and financing platform,born in the tax sharing system reform in 1994,grew in the complex investment environment at home and abroad.The platform is closely related to people's lives and contributes a lot to China's urbanization construction.Nowadays,it faces many problems,such as the huge government debt which may cause systemic financial risk.Since 2010,facing the urgent requirement of switching development mode and controlling government debt,our country began to introduce a series of policies and measures to strengthen government debt management and accelerate the pace of debt resolution.In 2010,the State Council issued the Notice about Strengthening the Management of Local Government Financing Platform.As a result,the requirement about clean up,rectify and standardize the local investment and financing platform was raised.In 2012,the CBRC issued the Guidance on the Strengthening of Local Government Financing Platform for Credit Risk Supervision,requiring banks to control new loans strictly.In the same year,the Ministry of Finance and other three ministries jointly issued the Notice on the Local Government to Stop the Illegal Financing Behavior to supervise government financing behavior with more stringent methods.Until 2014,the State Council issued the Advice on the Strengthening of Local Government Debt Management,which clearly stripped the financing function away from the local government financing platform.As an important subject of local government debt,the survival and development of municipal investment companies is facing great challenges.This paper will discuss problems about the local government investment and financing platform with the methods of literature research,qualitative analysis and case study.First,the paper will give a general description of the municipal investment company by summarizing its concept,classification,characteristics and so on.Then it will analyze the policy environment systematically,which will find the dominant ideas of our country on how to guide the development of local government debt and the platforms.In addition,it will analyze the present situation of the municipal investment companies in the perspectives of company strategic orientation and function.After that the paper will reveal the current problems about functions,debt redemption,development and management.It will also give some advises to solve these problems.This paper will choose the municipal investment company of A City as an example to analyze its current situation,problems and transition methods,which will provide better advises to other similar companies.By studying the case,the pertinence of this paper will be higher.Meanwhile,at the start of the municipal investment companies' transition stage,focusing on these companies will make this paper keep pace with the times.As a result,this paper will be very meaningful and of great significance,which will serve the practice of the transition and development of the municipal investment companies.