Discussion On The Development Status And Development Path Of Sichuan Development (Holdings) Co.,Ltd.

Local government investment and financing platform(The Platform)is an economic entity with independent legal qualification,which is built up with fiscal allocation,stock,land resource and other assets from local government and its departments or organizations.The Platform plays a crucial role in project investment,financing and management process.Along with the implementation of macroeconomic policy started in 2008 and the claim of preferential policies by national government,The Platform is welcoming a better opportunity to develop,which will have greater impact on economic growth by improving people's livelihood,environment protection,resource allocation and any other fields.While the economy is boosting rapidly encouraged by the Platform,the Platform itself is also bringing great potential risks to the stability of society due to its severe liability problems.In order to mitigate the financial risk and ensure the sustainable development of the Platform,national government has promulgated various operating practices,which enable the Platform to contribute more to the local economy,with a precondition of more control to the overall liability risk.In a word,controlling the liability risk and standardizing the operating mode of the Platform have its significant and practical meanings.This paper is based on writer's understandings of the actual operation status of Sichuan Development(Holding)Co.,LTD(hereinafter referred to as Sichuan development),discovering the existing problems and analyzing the reasons.It proposes targeted and operational suggestions,which can serve as an example for other government investment and financing platforms.With an overview on the operating mode of government investment and financing platforms at home and abroad,this paper also summarizes the establishment,marketing positioning,permanent organization and achievements of Sichuan Development(Holding),and prospects the plan in the future.It sums up problems from six perspectives,which are extensive internal management,weak efficiency of fund operation,high pressure of financial management,poor operation management,not-fully funded registered capital and tighter policy risk.Meanwhile,it suggests that policy and political factor is the main reason for the problems above.Regarding the six problems listed,the paper puts forward that Sichuan Development(Holding)should utilize marketization as a guidance to enhance internal management;conduct preplanning for financing with strict control of cost to expand the width and breadth of investment;build up financial holding group and exploit superior strategic resource for the reform and upgrade the traditional industry;highlight the state-owned capital for investment management and operation to encourage the reform of provincial state-owned enterprise;establish an risk control system for five kinds of personnel to help enterprise realize the sustainable development,so as to obtain support from provincial government.The suggestions also include to imitate the operating mode of Singapore Temasek Holdings Pte and adjust it for Sichuan Development(Holding).In general,the emphasis of Sichuan Development(Holding)is to enhance internal management and control overall cost,following the positioning of building up a state-owned capital operation platform for financial services,industry investment and national capital operations,and refer to the reform and development mode of other platforms to make Sichuan Development(Holding)to be a state-owned enterprise to be “government satisfied,society respect and staffs proud” with international influence.Under the requirement of strengthen the management of the Platform by national government,many local governments are thinking about the same question that how to standardize and improve the development mode of the Platform and to construct a sustainable government investment and financing platform connecting with the regional situations.This paper takes Sichuan Development(Holding),the only one provincial investment and financing platform,as a study object.In the current background,it could shed some lights on how local government is doing with the Platform,which has more practical meanings.