Government Platform Company Risk Control Research

Since the reform and opening up,the local government strengthen infrastructure construction,improve the quality of life of residents.When the government is investing in the project,government debt has been rising.As a financing channel of the government platform company,the pressure of its risk management and control has gradually increased.In this paper,based on the financial statements theory,we build the local government financing platform model.Using the method of case analysis,we analyze the actual situation of financing case of a state-owned Water Service Company in Yunnan,so as to reflect the problem of debt risk of platform companies,and propose the corresponding risk control measures.After detailed analysis we draw the conclusion that the company's asset liability ratio is increasing,the debt is rising year by year.Coupled with a large amount of external guarantees,contingent liabilities financing is larger,and the task is arduous,while the financing channel is compressed,and refinancing ability is abate,so risks have been highlighted.So,risk control of the government platform company is very necessary,it is great significance for boosting the healthy development of the local economy.This paper proposes to strengthen management and reduce the risk of enterprise financing from three levels.First,at the enterprise level,we should increase cash flow,prevent debt risk,formulate rational financing schemes,take financial leverage,capital cost and financing risk into consideration,carry out more cross-border business,reduce financing costs and control the scale of financing.Make it match the enterprise assets;Make it match the enterprise assets;Secondly,in the government level,we should promote the PPP project model to reduce the government financing pressure,do a good job of project approval,reduce unreasonable investment,improve the assessment system of local government,and adjust the proportion of assessment,appropriate adjustment of investment portion of the assessment score ratio.we should reform the tax sharing system and supervise the local governments.In general,the local government financing platform companies will continue to exist in the future,the road of transformation is still difficult,the risk can not be ignored.On one hand,the financial relations and expenditure responsibilities between the central and local governments are still unequal.On the other hand,the debt of the local financing platform companies is high and the pressure is huge.Therefore,it is necessary for us to do well in local government financing risk management and control.