Study On The Financing Modes Of Local Government's Investment And Financing Platforms

With the global trade growth slowing down,China's economy has entered the new norm state from the rapid growth.In order to promote the healthy development of China's economy and prevent the occurrence of local government debt risk,the central government has issued relevant documents,requiring local governments to strictly control the scale of the debt,to find a new way for city construction financing.Premier Li Keqiang once said that the overall risk of local government debt was controllable at the Davos Economic Forum in the summer of 2015.Although the amount of local government debt is relatively large,more than 70% of local government debt with investment nature,which means local governments can get the appropriate return in the future.The central government prepared to strengthen local government debt management and standardize local government debt issuance.In 2014,the State Council issued the document No.43,the government's financing functions is stripped out from the local government investment and financing platform.It requires local governments to inject capital legally,and give financial subsidies according to the law.The local government must not provide any guarantee for any company or individual in any way by breaking the law.This means that some of the traditional financing models of the local government investment and financing platform will be limited when financing,thus affecting the financing efficiency of the financing platform.Local government investment and financing platform needs rapid transformation by using new financing model to get rid of the financing difficulties.This paper mainly includes six parts.The first chapter is the introduction part,which aims to introduce the background,the significance of the topic,the present domestic and foreign research situation,research objectives,research contents,research methods and the technical route.The second chapter mainly introduces the theoretical basis.The third chapter is the traditional financing model and the problem analysis of the local government financing platform.This part is an overview of the current existing financing model of local government financing platform and the common financing model.At the same time this part introduces several new financing model.The fourth chapter is the case study.First L company and A district renovation of shanty towns project are introduced,and then focusing on the new financing model of L company.The fifth chapter is the recommendations on optimization of local government financing platform financing model.The sixth part is the conclusion and prospect.Through the case study of the company,it is found that the new financing model can not only effectively solve the risk of localgovernment's debt,broaden the financing channels of local governments,but also promote the optimization of local industrial structure and accelerate urban development,through diversified financing methods.