Research On Financial Risk Management Of Local Government Financing Platform Companies

In order to make up for the development of local financial burden and to cope with various crises and against natural disasters,local government financing platform has played an important role on its own advantage,and has used the government's policy support and their own characteristics to promote the development of the local.But in the process of the development platform there is a lot of raising debt,management and use of the potential risks.Although the financing platform in continuous launched a series of policies in China and gradually weakened the financing function of the government,the platform is also for the transformation and development.As to a series of problems,we need to select representative cities and platform company for this article.On the background of China's local government,this paper selected the investment and financing platform company in Henan province.Henan province is a big agricultural and a most populous province.In August 2009,the quantity of the company in Henan inreased dramatically.This extremely rapid development of local government financing platform in Henan province has more than a group company development model,capital scale,and characteristics of financing and more widely,so it is representative to choose the investment and financing platform of Henan province as the research object.However,with the multi-level investment and financing system in Henan province,it is not perfect that a platform management system is safe,and dysfunctional and risk of investment and financing platform building has increased dramatically.Therefore,in order to solve these problems and fully realize the role of local government financing platform,we must use a variety of financial and non-financial related knowledge to analyze the platform company whether there exists external and potential problems in the process of operation and management,and puts forward corresponding counter measures to prevent the impact of the international financial crisis.Only in this way can we speed up the urban infrastructure construction in Henan province and promote the development of the central plains.This article combines the Henan province investment and financing platform construction situation and existing problems.In the company of SL investment group in Henan province co.,LTD(referred to "SL company"),based on the financial statement analysis,there is the platform for the construction of the norms,and platform of risk prevention for a specific analysis and some suggestions.Main study way is to use the collected financial statements,combining with the characteristics of their own industry,and then select the typical financial index system to analyze;Then we will use the value F score calculation method of the model to measure the company's overall risk warning.Through this way we can know the overall risk level of the company.Based on the financial index analysis and model calculation,the conclusion about the company is: although there is no risk on the surface and not on the verge of bankruptcy and can continue to survive,it still need to pay attention to the potential financial risks.Embodied in SL company has certain financing risk and the risk of fund use,the company need to further adjust the structure of the company's debt and liabilities.At the same time,lower inventory and accounts receivable in the enterprise funds are accounted to improve the cash ability of the enterprise.This article analyses the financial risk of the SL company and put forward the suggestion to change the status of Henan platform company.In the final of the article we find that it is inital to take measures to against risks in time and to promote our entire platform of Henan province.Only in this way can we improve the development of the city and platform construction of risk prevention work.