Risk Analysis And Transformation Research Of Local Government Financing Platforms

Around 1990,a wave of urbanization was set off across the country.A series of construction targets,such as new cities and new villages,were included in the work reports of local governments,and urbanization entered the "fast lane".However,after the reform of the tax distribution system,the fiscal strength of local governments and the fiscal expenditure available for project construction dropped sharply,which had a certain impact on the urbanization process,and the funding gap for urbanization construction gradually increased.Before the implementation of the new budget law,local governments were unable to raise debt on their own credit.Similarly,under the constraints of loan general rules and guarantee law,local governments cannot directly apply for loans from Banks as loan subjects,nor can they provide guarantees for financing subjects to complete bank financing.Therefore,the emergence of local government financing platforms provides new ideas for the financing of urbanization construction,which also brings about the great development of this group.In advance of urbanization process,through the platform of local government financing business for the local infrastructure construction and the construction of major projects to provide a huge financial support,but in the process of local government's dominant ideas in order to "wortht" excessive use of financing platform company,producing a large amount of recessive debt balance,for the steady development of the local economy brings about adverse effects.This paper argues that the local government platform company is a special product under China's current political and economic system,since the produce of the high speed development of economy and urbanization in China rapid push all play an important supporting role,but because of excessive financing platform company of local government and the government debt risk has gradually been seen to the local government debt risk management,to resolve the importance and urgency of development and transformation is self-evident?Through introducingrelevant theories at home and abroad,this paper preliminarily reveals the development situation and existing problems of platform companies in China.Then,the case enterprise H city platform company is introduced.Through the data analysis of the company's assets,profits and operation management,the business risks faced by H city platform companies and similar local government financing platform companies and the direction of their next transformation and development are summarized.In this paper,through case analysis and theoretical study of the transformation of local government financing platform development the necessity and urgency of,and put forward the platform under the background of this company the developing direction of the transformation and the local government investment and financing business advice,market-oriented transformation of platform company and resolve regional risk of local government put forward the strong reference value and practical significance.