Research On Debt Risk Management Of Local Government Financing Platform

The implementation of the tax sharing reform and the promulgation of the old Budget Law have weakened the local government's financial power and borrowing power.As a result,the local government has to find another way to ease the pressure of regional economic development and performance evaluation by setting up a financing platform.Along with the rapid expansion of the local government financing platform,the government's violation of guarantees and hidden debts have caused great concern in the central government.Therefore the central government has issued a number of policies and decrees to regulate local government debt,from various aspects such as debt financing mechanism and budget control to achieve the divestiture of credits between platform and government.Due to the loss of government credit asylum,the debt risk of the local government financing platform gradually emerges.Once certain default occurs,the fiscal and financial risks will eventually transmit to regional systemic risks.Therefore,this paper studies the debt risk of local government financing platforms.Specifically,this paper firstly analyzes the current situation of local government financing platform and debt risk management,then expounds the current situation of local government financing platform debt and the generality of its existence.Besides,through the combing of public information,the representative local government financing platform--Ningbo Zhenhai Haijiang Investment Development Co.,Ltd.was selected as a specific research case to comprehensively analyze its debt situation.In addition,the AHP model is used to construct the debt risk evaluation system of the local government financing platform,and Haijiang investment is evaluated by the model.Finally,combined with the debt risk response strategy of Haijiang Investment,the countermeasures for debt risk prevention of local government financing platform are put forward.The basic conclusions of this paper are as follows:According to public data,China's semi-cash flow coverage and cashless flow coverage platforms account for more than 15.6%of local government financing platforms at 2017.It seems to be a certain ration in local government financing platform debt from a national perspective.In view of the fact that the local government financing platform debt risk is both financial risk and fiscal risk,it has a strong practical significance for the research.From the analysis of influencing factors,the debt risk of local government financing platform is mainly affected by the three levels,which are national,local and enterprise.Therefore,to prevent the debt risk of local government financing platforms,we should start from these three aspects.At the national level,it should take the rule of law at first,then standardize the system,finally build a complete operational system.At the local level,it should have a top-level design,establish a sound early warning system and a debt repayment mechanism.At the enterprise level,it is necessary to introduce CRMW,promote innovation,and improve its debt management capabilities.