| Over recent years,in order to accelerate the urban infrastructure construction,local governments have set up city investment companies to gather money to meet their needs in public investment.As the investment and finance body of infrastructure construction,city investment companies play an important role in widening the financing channels and making up the local financing gap.However,as the City Investment Company is both the government’s financing platform and a corporation,big problems exist in the company’s operation,such as lack of standardization in management,incompetence in profiting and rising debts,especially over recent years the debt risk has been getting higher and higher.Hence,how to identify and control the debt risks and promote the company’s healthy development is a critical issue that City Investment Company needs to study on.This paper is divided into four parts as follows:In the first chapter,it introduces the development of local government’s investment and finance company and analyzes the reasons for risks and the existing problems.In the second chapter,taking the City Investment Company of H city as an example,the paper analyzes its status quo and the risks it’s facing.In the third part,with the adoption of analytic hierarchy process(AHP),the paper sets index for evaluating the debt risks,formulates an analytic model for the debt risks of H City Investment Company and determines the scale of the risks.In the fourth chapter,the paper puts forward some suggestions on how to control the company’s debt risks.At present,there are plenty of researches on the debt risks of City Investment Company from the angle of local government,however,researches done from a comprehensive angle considering both the corporation and the government are rare.The creative part about this paper lies in aiming to adopt other scholars’ research fruits and analyze H City Investment Company’s debt risks by analyzing its operation mode,management structure,finance situation and how highly it is indebted and finally put forward corresponding measures and suggestions. |
