Evaluation And Control Of Debt Risk Of Local Government Financing Platform In Shandong Province

Debt risk of local government financing platform is an important inducement of implicit debt of local government.Although 2014[43]policy clearly states that local government financing platform debt is stripped of government debt,the local government financing platform's historical debt still needs the power of local finance to solve it.On the other hand,the market-oriented transformation of the financing platform is not an overnight process,its function as an urban builder in the process of urban construction and development will continue for some time to come,and it will certainly maintain close contact with local governments.This paper analyzes the mechanism and reason of debt risk formation from the local financing platform debt risk.The main reason lies in the imperfection of the old investment and financing system."Financial rights move up and affairs move down." Local governments do not have the right to borrow money.Although the implementation of the new budget law in 2015 and the unprecedented reform of the local government's investment and financing system have given local governments the right to borrow money,local governments still need to rely on investment to drive economic growth in the context of the new normal of Chinas economy.Local economic development can not be boosted by the issuance of debt alone.In this macro context,the local financing platform should continue to play the role of countercyclical regulation under the leadership of local governments and drive the development of the economy.In this paper,the data of local government financing platform in Shandong province are selected as samples.The analysis of factors and K-means clustering are used to analyze the samples.The risk is classified into liabilities,assets and profit factors.Through the empirical analysis,the current risk exists in the government investment and financing platform in Shandong Province,and the relevant measures to resolve the risk are further proposed.We will gradually rationalize the system and mechanisms of investment and financing platforms by improving the operation and management mechanism of platform companies,improving the debt management and repayment guarantee mechanism of local governments,and regulating the operation of financial institutions,so as to complete the market-oriented transformation of platform companies.