Financial Risk Analysis Of Government Financing Platform In H City

Since 2009,under the guidance of a series of policies to stimulate economic recovery in China,local governments have established financing platforms and carried out a large number of debts,relying on the advantages of resource monopoly and government credit.The funds raised have been used for the construction of municipal roads,water conservancy construction and other infrastructure and public utilities projects.Among the financing platform companies in H city,H city Construction Group Co.,LTD.has the largest assets,the largest liabilities and the most projects under construction.It has independent legal person,administrative structure,relatively perfect internal control system.But its management is largely led by the government.The company is in a certain monopoly position in land development and consolidation,infrastructure construction,shanty town reconstruction and other aspects in H city.Based on the theoretical analysis and definition of local government financing platform,this paper conducts a multi-dimensional economic theoretical analysis of local government financing platform from the aspects of financing mode,management mechanism and financial risk,moreover,defines and reveals its main characteristics,and analyzes its main stakeholders from the perspective of stakeholder theory.Then it analyzes the macroeconomic environment and the development status of city H urban investment company,and finds that its three main businesses are all dependent on the local government,greatly affected by the local government’s annual land transfer plan and project investment plan,and do not actually participate in the market competition.Finally,the paper adopts the multi-level fuzzy evaluation method and financial index analysis method to analyze the financial risk of H city Construction Group Co.,LTD.,and concludes that the current financial risk of H city Construction Group Co.,LTD.is mainly the risk of asset management,investment,financing and capital recovery.This paper targeted put forward Suggestions to improve the H financing platform company present situation,through to the H city Construction Group Co.,LTD.,thus,It will find and prevent risks and promote the healthy and orderly development of financing platform companies.