Research On The Transformation Of The Local Government Financing Platform

Local government financing platform is a corporate in law formed by local government to break through infrastructure construction funds bottleneck and mainly responsible for infrastructure investment,financing and construction,playing a tremendous role in promoting the urbanization construction,social and economic development.But in October2008,as the global financial crisis broke out,Iceland almost bankrupt the country,by the end of 2009 so far,Greece,Ireland,Dubai and Mexico sovereign debt crisis have out broken one after another,triggering global concern about government debt problems.Although the scale of government debt in China overally accounted for the small proportion of GDP,but still aroused the concerns about government debt problems.The State Council attached great importance to the issue of government debt and ordered the National Audit Office lead all local audit offices from August to September 2013 to conduct a comprehensive audit of the government debt.As can be seen from the Audit Commission published by the National Audit Office,China's government debt is mainly concentrated in the local government financing platform,for a time,the local government financing platform consolidation,standardization,transformation become the focus of public attention.Since then,the state has launched a series of new deal on local government financing platform management,stripping the basis of the existence for the past from local government financing platform,so that the transformation is imminent.Nanjing DN State-owned Property Investment Company is a financing platform directly under the Nanjing municipal government,which was established in March 2014.But in the near future of its formation,it suffered the changes of the industry.The paper sets Nanjing DN State-owned Property Investment Company as a example to take a research on the transformation of local government financing platform,based on the summary of local government financing platform related theory and the transformation of the practice exploration,the paper firstly studies the necessity of transformation,explain why Nanjing DN State-owned Property Investment Company should transform,secondly elaborate the conditions and bases of its transformation,analyze the favorable external conditions and its internal strength.Finally,using SWOT model,refine the strength,weakness,opportunity and threat factors,analyze the transformation strategy of Nanjing DN State-owned Property Investment Company,point out in the new normal,Nanjing DN State-owned Property Investment Company should change the development thought,take the implementation of market-oriented operation,create new comprehensive investment,financing platform and state-owned capital investment management company,on the basis of the above,put forward the advice on transformation from eight aspects to provide reference for Nanjing DN State-owned Property Investment Company.