Research On Risk Control Of TC Construction Investment Company

In order to accelerate the pace of local urbanization and regional industrialization and implement various policies of the Party Central Committee,local governments shall raise a large amount of construction funds.However,local governments have a large amount of expenditure responsibility in education,social security,medical and other aspects.Compared with the tense financial resources,local governments have generated a large amount of extra-budgetary infrastructure construction funds.In order to solve the fund gap legally,local government financing platform companies have been established.At present,local government financing platform companies is growing,and the problems that follow are becoming increasingly prominent,mainly reflected in the centralized arrival of long-term debt repayment in same period,which makes local government financing platform companies face higher debt repayment pressure.In 2017,according to the information revealed by the CBRC,more than 5000 financing platform companies had withdrawn.Many local financing platform companies have serious problems,such as high debt,default overdue and even bankruptcy.Therefore,in order to ensure the sustainable development of the local government financing platform,we must strengthen the risk control of the local government financing platform company,and implement the control measures,strictly control the risk.This thesis is divided into five chapters.The first chapter is the introduction part,which introduces the background and significance of the study,and the research status at home and abroad,research ideas and methods,as well as research innovation and characteristics.The second chapter is relevant concepts and theories.Based on the description of the definition,characteristics,risks and important roles of related concepts,this paper elaborates the methods of risk control in detail.Finally,it combs the relevant theories of economic theory,including principal-agent theory,fiscal decentralization theory and public goods theory.Chapter 3 puts forward the research object of this paper-the current situation and problems of risk control of TC Construction Investment Company.This chapter makes a comprehensive analysis of the situation of TC Construction Investment Company,including the basic situation,organizational structure,main business status,risk control status and existing problems of the company.Firstly,this paper clarifies the present situation of risk control of TC Construction Investment Company,including the organizational structure of risk control,investment and financing decision-making links,fund approval links,transaction links and operation links.Finally,it points out the main problems that TC Construction Investment Company faces,such as:the control system of investment and financing decision-making links is just a kind of formality which results in excessive financial risk;the lack of management system leads to higher risk of operating;and the lack of debt and the inadequate control of debt scale give rise to a series of hidden dangers in policy.Chapter IV puts forward the countermeasures and suggestions of risk control from three aspects:financial risk,operational risk and policy risk,including raising the mechanism of risk control,standardizing the operation and management of TC construction investment companies,making regulations with actual circumstances for preventing policy risk.The fifth chapter is the conclusion of the study,which summarizes the conclusions of this paper and points out deficiencies of this paper.The innovation and characteristics of this paper mainly lie in the following aspects.First,the object of the study is relatively novel.In recent years,most of researches on risk control of local government financing platform is macro-theoretical analysis,but lack of risk control of regional government financing platform in the Middle East.This paper creatively chooses a county construction investment company as the research object,aiming at the risk control research of investment and financing links,operation links and management system,which has regional reference.Second,the content of this study is innovative.At present,the details of risk control in local government financing platform risk control research have not been effectively concerned.Therefore,the contents of this paper are specific and detailed.