Analysis On The Opertion Mode Transformation And Effect Of Local Government Financing Platform In China

Under the dual policies of tax sharing system reform and the old budget law,local government financing platform came into being.The financing platform of local government plays an active role in improving the construction of public infrastructure and promoting the development of urbanization.However,with the continuous progress of local modernization,the problem of local government financing platform is gradually exposed.Due to the particularity of the reasons and purposes of the establishment of platform companies,the local government financing platform as an enterprise lacks independence and independence,and cannot operate independently and assume its own profits and losses.In the case of relatively small financing scale,these problems do not affect the overall situation.However,with the rapid expansion of the scale,the assets and liabilities of the platform will be far beyond the controllable range.In addition,the operation and management of the platform is not scientific,so it will greatly reduce the effective utilization of funds,and the operation situation is not ideal.With the approaching of repayment period,the operating debt of local government financing platform will inevitably become a great burden on local finance,which is likely to cause systemic financial risks.The report of the 19th National Congress of the Communist Party of China clearly points out that we should firmly fight against major risks,and financial risk prevention is the top priority.In this context,financing platform companies must seek operational model transformation,effectively resolve risks and help local development.Therefore,this paper chooses the local government financing platform x Port Co.,Ltd.as a case study.First of all,from the perspective of operation mode transformation,this paper analyzes the characteristics,advantages and disadvantages,the necessity,feasibility and the path of operation mode transformation of the local government financing platform led by the government and led by the enterprise,and provides analysis basis for case analysis.Then,based on the transformation of the enterprise leading operation mode implemented by X Port Co.,Ltd.in 2017,this paper analyzes the motivation,feasibility and path of the transformation of the operation mode of the case company.Finally,from the financial performance and non-financial performance,this paper analyzes the transformation effect of the leading operation mode of X Port Co.,Ltd.,summarizes its experience,and draws conclusions and suggestions.