Research On Financing Channels Of The Local Government Financing Platforms

The Local Government Financing Platforms(LGFPs)is set up by the local government to local government investment project funding task for the enterprise mission of state-owned enterprises with Chinese characteristics,its investors generally for the local government or local government authorized department,with registered capital mainly comes from funding or government assets such as land for investment.After China launched its 4 trillion infrastructure investment plan in 2008,the platform company entered a period of rapid development.However,China has introduced continuous policies to regulate the financing activities of LGFPs in recent years.For instance,"No.43 Document of State Council" of 2014,"No.4 Document of Ministry of Finance and Other Departments" of 2016 and "No.87 Document of Ministry of Finance Budget Division" of 2017 all had impact on LGFPs,indicating that both the borrowing mechanism of local governments and regulation on LGFPs will have to face change,and LGFPs need transformation for development.The economic and technological development zones of N city approved by the state council in 2001 as the state-level economic and technological development zone,the construction of public infrastructure projects,investment and financing by relying on nothing more than a platform company LG construction investment group.In recent years,a series of standard local government financing policies introduced gradually,LG construction investment group,on the one hand,facing the yearly district urban construction plans pressure,on the other hand,facing the difficulties of financing which is limited by various policy,once fell into the difficult position of business development.This article through carries on the analysis about the present situation of LGFP company policies,to LG construction investment group as an example to analyze its current difficulties facing in the financing channels,combined with the current business situation,makes a tentative study of the financing channels of LG construction investment group,broaden the LG construction investment group of financing channels,build reasonable financing model,provide Suggestions for the transformation of its sustainable and healthy development.