Case Study On Credit Risks Prevention Of City Construction Investment Bonds

City construction investment bond are issued by financing platforms,these funds are used for local infrastructure construction,and the the bond can get an implicit guarantee from local government.In 2009 our central government issued some relevant policies to encouraged the local government to financing for construction project by establish local financing platform,the issuance number and size of local city construction investment bond increased rapidly,however,these bonds faced the maturing period and the payment of debt in recent years,in face of these large debt,the risk cannot be ignored.Early in 2018,the government issued No.194 paper,cl early claimed that in the background of preventing and resolving the major risk,resolutely prevent the addition of recessive debt.The city construction investment bond as an important part of governments' recessive debt,the regulation will be more standard.The market widely concerned nonstandard enterprise financing sources and potential impact on the solvency of city construction investment bond,the research on the risk prevention of city construction investment bond is very important.It's worth noting that if the platform company produced substantial debt default,then the default responsibility will spread by the entity economy,the financial system,local finance,and eventually rise to the national level of debt crisis.Therefore,it is very important to study the risk prevention and control of local city construction investment bond.Case study and theoretical research are adopted in this paper.In the beginning,the paper described the development status and potential risks of local city construction investment bonds.Then,this paper selected the city construction investment bond by F city investment company as the case for research,introduce the business and bond issuing situation,and the bonds' basic clauses and issuing process,then analyse the bond in many aspect contained the financial and operating conditions of the company,F city government aspect,the bond itself aspect and the macroeconomic perspective.On the basis of the study,this paper points out the source of city construction investment bond,and propose some suggestions for risk prevention.The fourth part listed the local city construction investment bond risk prevention according to the analysis above,and these suggestions also contained four parts;local financing platform,the government,financial institutions and macroeconomic regulation?It contains:transformation of city investment company,resolve the debt risk through multiple ways;strictly controlling the flow of investment funds and innovative bond varieties;expanding government financing channels and strengthen local debt management;improve information disclosure and supervision system,it has a practical significance to promote healthy and orderly operation in local city investment bonds.The last part is the conclusion of this paper.