Research On The Financing Dilemma Coping Strategies Of Haxi Investment Company

As a product of China’s special economic system,financing platform companies emerged with the reform of government investment and financing system and tax distribution system in the early 1990 s,and were catalyzed by the2008 financial crisis.Under this background,as a city-level investment and financing platform in Harbin,Haxi investment company was established to raise funds for infrastructure construction in Haxi area and carry out regional development and construction.After more than a decade of development,the Haxi investment company has provided continuous funds for the development and construction of the Haxi region through debt financing with its own government background and credit advantages.The core area of the Haxi region has been transformed from a run-down old factory area and the urban-rural fringe into a rapidly rising new urban area.But at the same time,many problems have emerged in the financing process of Haxi investment company,such as large financing gap,narrow financing channels,high financing costs and single repayment sources.In particular,the adoption of the new budget law in 2014 and the promulgation of No.43 document and other policies require the stripping of government financing functions of financing platform companies.Therefore,it is of great theoretical guiding significance and practical operation value for the sustainable development and guarantee of the follow-up financing ability to recognize the financing problems faced by Haxi investment company,study the countermeasures to break through the financing dilemma in combination with the changes of China’s current financing environment.This paper first introduces the current financing status and financing difficulties of Haxi investment company,and further analyzes the causes of financing difficulties,indicating that the existing financing difficulties have seriously affected the sustainable development of the company,which is not conducive to the smooth progress of follow-up financing,and the company is in urgent need of breaking through the difficulties to change the financing mode.Secondly,combined with the company’s own characteristics and changes in thefinancing environment,in-depth analysis of the relevant factors to deal with the company’s financing difficulties,and on this basis,from the company’s financing advantages and disadvantages to assess the direction of the current financing difficulties,to provide a basis for Haxi investment company to develop countermeasures to solve the financing difficulties.Finally,according to the actual situation of Haxi investment company,specific Suggestions are given to solve the financing difficulties of Haxi investment company from the perspective of governance mechanism,financing channels,classified financing,debt risk control and other strategies that can win investment.Through the study of this paper,it can provide reference for Haxi investment company to break through financing dilemma,expand financing channels,deal with debt risks,and provide some reference for other financing platform companies in China.