Research On The Transformation And Development Of Local Government Investment And Financing Platforms

Local government's investing and financing platform surged under the background of mismatch of administrative power and financial power,and made positive contributions to broadening financing channels,promoting the development of urban infrastructures and accelerating the process of urbanization.With the characteristic of deleveraging in Post Financial Crisis Era,the risk of local government debt is emerging.Therefore,Central government began to order investing and financing platform to stripe the function of local government debt financing,and enhance the transparency and openness of local government debt.In recent years,China has introduced a series of policies of debt risk control in order to prevent systematic financial risk of local government debt,which pointed out the urgency of transformation of local government's financing platform.In this paper,the author firstly introduces the concept,classification,foundation and evolution of local government's financing platform,discusses the operation mode and typical case of financing platform at home and abroad.Secondly,Guizhou Poverty Alleviation and Development Co.,Ltd.which is specialized in Relocation for Poverty Alleviation is chosen as study object for elaborating its foundation background,governance structure,operation performance and transformation issues.Eventually,in order to improve the new mode of investing and financing for Relocation for Poverty Alleviation in Guizhou,the Company's transformation can adopt the idea of classified management and a two-phase strategy which lead to profitable business or a SPV(Special Purpose Vehicle)in the mode of PPP(Public-Private-Partnership).