Research On The Debt Risk Management Of Hubei Provincial Communications Investment Group

The local government investment and financing platform is the product of the reform of China's central local tax sharing system,the reform of the government's investment and financing system,and moderately loose monetary policy.It has made outstanding contributions to public investment for local governments,improvement of urban infrastructure,and protection against global financial crisis and pulling the economy smoothly.However,the huge debt risk caused by the over-expansion of its financing scale,unbalanced financing structure,single source of funds,hidden potential debt,has caused great concern and widespread concern.Therefore,it is of-great theoretical and practical significance to discuss the debt risk of Hubei Provincial Communications Investment Group from the perspective of consolidated statements,a state-owned investment and financing platform company at the provincial level.According to the connotation,financing mode and characteristics of the local government investment and financing platform,and guided by public product theory,information asymmetry theory and risk management theory,the policy basis for debt risk management of investment and financing platforms is summarized.After that,based on the analysis of the consolidated statements of the Hubei Communications Investment Group,including its main business analysis and interest-bearing debt analysis,it was found that the debt risk it carries has a high debt-to-asset ratio,low asset liquidity,and unstable owner's equity,large fluctuations in profitability,net cash flow from investment activities continued to be negative,and net operating cash flow decreased.At the same time,the introduction of Jiangxi Expressway Investment Group financial data in the solvency,operating efficiency,profitability and other aspects of the horizontal comparison,further confirmed the fact that the high risk of debt carried by Hubei Communications Provincial Investment Group.In view of its debt risk,the summary causes are mainly distributed in laws and policies,business environment and management.Therefore,we put forward the management mechanism of debt risk from the three dimensions of the government,financial institutions and Hubei Provincial Communications Investment Group.The local government should give full play to its regulatory role,strengthen the supervision of Hubei's investment and financing,improve the investment and financing platform's investment laws and regulations system,and strengthen the debt company's debt audit work.Financial institutions should optimize the company's risk identification and assessment through the pre-lending platform,real-time attention to company's debt audit work.Financial institutions should optimize the company's risk identification and assessment through the pre-lending platform,real-time attention to early-warning mechanisms after lending,and strengthening communication with all parties concerned to strengthen the control over the debt risk of investment and financing platforms.For Hubei Provincial Communications Investment Group,it needs to improve its corporate governance structure,improve information transparency,and strengthen financing and investment.management,setting up a special debt repayment mechanism,and improving the risk control system.Starting from the above three aspects,we will reduce the debt risk of the Hubei Communications and Investment Group and promote the development in the direction of market-oriented operations,enterprise-based operations,and rationalized liabilities.