Research On Risk Control Of Urban Investment Bonds Of Chongqing Hechuan Urban Investment Corporation

My country's economic development has largely benefited from infrastructure construction.As an important carrier for the government to isolate investment and financing of public projects and debt risks,the importance of urban investment companies in the current economic situation and policy environment is self-evident.On November 13,2019,the executive meeting of the State Council decided to further reduce the minimum capital ratio of some infrastructure projects and strengthen financing to support infrastructure.This policy has important positive significance for the future development of urban investment bonds.However,urban investment bonds also contain huge risks.A series of urban investment bond "black swan events" triggered investors to think about the default risk of urban investment bonds.In this context,the research on the risk control of it whether it is from a practical level or a theoretical level is very necessary and significant.This article uses the literature research method to study the domestic and foreign municipal bonds and urban investment bonds related literature,including the background,credit risk and risk control research.Then elaborated the concept of local government financing platform and urban investment bond concept and the development status of urban investment bond,and took the non-public issuance of short-term corporate bonds of Chongqing Hechuan Urban Construction Investment Co.,Ltd.in 2019 as a case study object.First,the article analyze the current situation of it.Then,combined with the risk management theory,the risks and actual conditions of the bonds are analyzed from the three perspectives of macroeconomic level,local government level and issuer level.Then the risk is measured on the basis of risk identification,the F-score model is used to measure the company's financial status,the vertical and horizontal comparative analysis of local government risk,and the rationality of bond size are analyzed.Afterwards,it focused on the risk prevention measures adopted by its financial status and operating capabilities,local financial strength,credit guarantee measures and debt repayment guarantee measures.Finally,relevant suggestions on the risk control are put forward from the macro-control level,local government level and local government financing platform level.In this article,through qualitative and quantitative analysis of the risk of urban investment bonds of it,the study found that: using the F-score model to analyze the financial situation,it was found that the company has no financial crisis in the past threeyears,and the model judgment results show that the company's financial situation is good;A horizontal comparison found that the financial strength of the district in various districts and counties in Chongqing is at the upper middle level,and the city 's government debt risk is generally controllable;the funds raised by this bond do not exceed 2 billion.After the completion of this bond issuance,the company 's debt risk is generally control.Through analysis,it is found that the company's urban investment bond risk is low and the risk control measures are effective.The city construction and development company should balance the relationship between local financing platforms to promote investment and prevent risks.At the same time,it must not rely too much on the government in the company's development strategy,but should improve self-restoration ability.