Research On Transformation And Development Of Local Government Investment And Financing Platform

China's local government investment and financing platform is a product of the domestic economic and political system and specific historical conditions.In 1994,the tax-sharing reform and the implementation of the budget law resulted in the local government's “transfer of financial power and the shift of authority”,and local governments to solve urban infrastructure construction.Funding pressures in other areas have begun to set up investment and financing platforms to raise funds for urban construction.Since its inception,local government investment and financing platforms have used innovative financing methods to raise funds to implement infrastructure and people's livelihood utilities,solve the problem of insufficient financial investment,and make great contributions to the urbanization process and social and economic development.However,in recent years,with the rapid expansion of local government investment and financing platforms,the accumulated debt risks of many years have begun to appear,the local debt risks have intensified,and the economic environment changes and the fiscal budget management system reform,the original development model is in trouble,and the transformation and development is imminent.It has become a hot spot of social concern and a new research topic for state-owned enterprise reform.Based on the analysis of domestic and foreign local government investment and financing related literature,this paper is based on the enterprise strategic management theory and corporate governance theory,from the origin background,development history and current situation of the government investment and financing platform,the current development problems and risks.Start with the urgency and necessity of the transformation of investment and financing platform companies.Using comparative research method,select representative countries and regions,introduce and compare the main financing investment modes of domestic and foreign governments and local governments in China,analyze the advantages and disadvantages of each investment and financing model,and summarize its experience and enlightenment.Taking J City Investment Group as a case,introducing its development history,contribution contribution and status quo,expounding the main practices of J City Investment Group's transformation and development in recent years,and analyzing its function positioning,strategic planning,corporate governance,debt resolution anddiversified development,etc;establish a transformation and development index evaluation system,compare and evaluate the effects of transformation and development in recent years,summarize its transformational gains and losses and extract effective countermeasures and universal recommendations.Finally,the proposed countermeasures and safeguard measures for the transformation of local government investment and financing platforms were proposed in a targeted manner.Platform enterprises should choose the appropriate transformation path according to their own actual conditions.There are mainly five recommended countermeasures: to be better and stronger,to develop into a comprehensive urban development operator;to upgrade the state-owned capital operation capability,and to transform into state-owned capital investment or state-owned capital operation company.Actively change the status,participate in the construction of PPP projects by government representatives or social capital participants;improve the level of asset management,become a professional trustee of financial-related enterprise funds and government subsidy funds;focus on public and people's livelihood investment construction Transformed into a public welfare state-owned enterprise.In order to ensure the success of the transformation of the platform enterprise,five safeguard measures have been refined: clear functional positioning and strategic development planning;practical“injection” and debt resolution to improve development quality;improve corporate governance structure and establish modern enterprise system;Efforts will be made to expand operational business,improve operational level and core competitiveness;improve incentive and restraint mechanisms,and establish a market-based selection and employment system.