Improvement Research On Financing Problems Of D Municipal Company

China’s urban investment company originated in the 1990 s.Under the background of the reform of the taxation system of the central and local governments and the government’s investment and financing reform,the first batch of urban investment companies came into being.The city investment company refers to the government investment and financing platform established by the company system model to raise funds for urban infrastructure construction,which plays an important role in the overall development of China.For a long period of time,the city investment company has played a huge role in promoting the economic development of the entire city.It is an important force to promote China’s economic construction and urban construction.Affected by China’s “4 trillion” economic stimulus plan in the2008 financial crisis,the number of local government financing platforms has increased significantly through the number of policies,and its business scale has also expanded rapidly.However,in this context,because the financing scale is growing too fast,the internal management mechanism of the enterprise is not perfect,and the supervision mechanism is not in place,the city investment company has also generated many risks and drawbacks while accelerating its development.The governance structure is imperfect,the operating efficiency is low,and the solvency is insufficient.Therefore,how to manage the city investment company,change its financing status,improve its financing structure,and solve the problems in its current financing process has certain reference significance.Based on the research results of the world,this paper takes the relevant theory of corporate financing as the guidance,and takes the financing problem of D City Investment Company as the research object.It analyzes the D city investment company from three aspects: financing environment,financing method and financing ability.The status quo of financing,and found that D City Investment Company has problems of excessive financing scale,unreasonable financing structure and large financing risks.On the basis of the above analysis,through in-depth analysis of the reasons for the financing problems of D City Investment Company,further suggestions for improving the financing planning level,optimizing the financing structure and enhancing the risk control are put forward.This has important theoretical and practical significance for guiding China’s urban investment companiesto deal with the current financing problems and improve the financing status of China’s urban investment companies.The paper concludes with three conclusions: First,when the company conducting financing planning,it should first fully consider the financing environment,and secondly should combine its own business scale and financing structure,then,it should consider its own financing ability,and finally combine all the above aspects to found problems in financing,so as to reasonably determine the financing plan in the next stage.Second,the current scale of financing of city investment companies is relatively large,the degree of capital utilization is low,and resources are wasted.Therefore,this paper believes that in the financing planning,it should analyze the funds required for its own business activities and investment activities in advance,and repay the stress test of interest-bearing debts within a reasonable period,so as to reasonably match the cash flow gap.Third,enterprises should control the relevant risks and financing costs when expanding their financing channels.