The Capital Raising Risk Management Of City Investment Company

City investment company,which originated in 1992,is the main investment and financing platform of local government in China.Urban investment corporation refers to the local wholly state-owned enterprises engaged in the project financing,construction,asset operation and management of urban construction with the purpose of improving the financing capacity of urban construction and the utilization efficiency of urban construction funds,which are provided by the government with financial allocation,land allocation and allocation of state-owned assets.The initial purpose of the city investment company is to integrate public resources,adjust the industrial structure,make the most effective use of government resources to promote economic development,and solve the problem of shortage of funds for local infrastructure construction.Therefore,financing has always been one of the main tasks of the city investment company.City investment company financing channels can be roughly divided into two types: debt financing and equity financing.Debt financing mainly includes bank loans,bonds,notes payable,accounts payable,etc.Equity financing mainly includes stock financing.However,for most of China's county-and district-level city investment companies,the adoption of equity financing is unrealistic due to their own conditions.Therefore,debt financing,mainly bank loans and bond issuance,is generally adopted,which also leads to their relatively single financing channels.In addition city investment company still exists the government enterprise is divided,the investment risk is too big and so on the problem,these problems make city investment company's financing risk is increasing day by day.This article selects the wuhu county investment company as a research case of fundraising risk management,using the case analysis,data statistics and summarized research methods,through to the wuhu county firm subject nature of legal person,the main business scope,the financial situation of wuhu county investment company's financing risk for an analysis of concrete conditions,and tries to analyze the cause of fundraising risk: debt larger scale,financing channel is single,poor profitability,imperfect corporate governance structure and external large risk guarantee and so on five,and then quantify the risk assessment,come to wuhu county firm does exist a greater risk of financing.Finally,the paper gives some Suggestions on the causes of risk,such as controlling the scale of debt,establishing multi-channel financing and defining the positioning of urban investment company,so as to help perfect the whole system of financing risk management of wuhu county investment company and provide reference for other urban investment companies.