Research On Local Investment And Financing Platform Financing Risk Management And Control System Structure

The municipal infrastructure construction and the projects related to people's livelihood are the industries which matters national development and economic development.local government financing vehicles have always been treated as an essential platform where the government develops public infrastructure projects and local economic construction.The research and management of local government financing vehicles are valued by academic circles and supervision departments.With the deepening research of risk controls,an increasing number of companies use risk control systems to avoid risks to achieve management goals.Local government investment and financing platform produced in special historical background,the development history of twists and turns,backward management system,combined with its internal is a lot of government personnel part-time employees,professional level is low,not strong sense of responsibility,mainly engaged in urban infrastructure construction,there is no fixed main business and profitability,revenue mainly comes from government subsidies and other factors,the local government investment and financing platform for the financing risk is high.As result of that,it has significant meaning to avoid risks and achieve the stable development to build the system of management of local government financing vehicles.Focused on the high-risk problem of local government financing vehicles,the paper takes the management of financing risks as the point cut and the all-directions risk management Theories,asymmetric information theory,modem organization theory as the support.This paper uses literature research Method with a view to give a broad outline of research findings of Chinese and overseas scholars which grasps the research direction and research status of academia and learns from it.The paper unifies the practical operation experience of management of local government financing vehicles to get the research design.This paper expounds the basic theory and basic concepts with reviewing the local government financing vehicles for the development situation,and analyzes the reasons for the high financing risk and defects in process of the management of local government financing Vehicles to draw a lesson from history.Combined with specific laws,the standards of accounting practices,the objective conditions of the structure of local government financing vehicles,the paper builds the system of local government financing vehicles with the business process and the management process to get a system of management of financing risk which is legal and effective.Finally,the framework constructed above is applied to HN city investment company and tested through simulation operation to improve the framework system in order to provide a certain reference and guidance for practical work.It is hoped that this study can improve he system of management of financing risk of local government financing vehicles to reduce the financing risk and makes it better serve the urban infrastructure construction and becomes a stable part of the local economic development chain.