Research On Debt Risk Of Local Government Financing Platform And Its Prevention And Control

As an accessory of the government,government financing platforms at all levels have undertaken the functions of local infrastructure construction,boosting domestic demand and stimulating the economy for a long time in the past.It plays an important role in improving the living environment and improving the basic supporting facilities.After two rounds of financial crisis in 1998 and 2008,the central government began to tighten the policy supervision of financing platform,and the situation of illegal financing and excessive borrowing improved.However,the huge amount of debt accumulated in the early stage has caused great pressure on the financing platforms at all levels to repay the principal and interest.The tightening of financing channels has made it impossible to continue the maturing debt.The debt storm in the capital market continues to occur,and the default risk of the platform company's debt has increased significantly compared with the previous years.Therefore,it is necessary to make an in-depth analysis of the causes of the debt risk of financing platform,resolve and prevent the risk,further standardize the debt raising behavior of financing platform,and ensure the sound development of financing platform.In this paper,Nanjing New City Development Zone financing platform-new city construction is selected as the research object.The first chapter briefly describes the research background,research significance and innovation of this paper.Combined with the existing research results at home and abroad on financing platform debt reasons,debt risk performance,debt risk causes,debt risk management and control,the basic framework of research ideas and research methods is preliminarily discussed Frame up.The second chapter mainly introduces the related basic theories,including the theory of public goods,risk management theory and enterprise financial crisis early warning model.Public product theory explains the business model of financing platform;financial crisis early warning model provides specific Z value for debt risk assessment of financing platform in case study;risk management theory asthe core provides the basic framework of risk identification risk assessment risk response for the writing of the full text.The third chapter firstly redefines the financing platform according to the regulatory documents issued by various ministries in recent years and the characteristics of the market-oriented transformation of local government financing platform business in reality.At the same time,it simply combs the development process of local financing platform in the past 30 years,divides it into four development stages: germination stage,development stage,outbreak stage and supervision stage,and makes a detailed discussion on how the above four stages affect the formation of debt risk of financing platform.Then through the analysis of the financial data of the city investment bond issuing enterprises,we can find that the specific debt scale of the local government financing platforms at all levels is large and the growth rate is fast,the mismatch between the project and the repayment period,the weak profitability and solvency,and the concentrated maturity of the future debt and other risk performance.Through the data research,it is found that financing platforms at all levels in China have become the largest debt subject of local governments since 2013,and the debt growth rate of financing platforms ranks the second in the whole industry,second only to real estate development enterprises,whose after tax return on net assets is far lower than other non-financial enterprises.At the same time,due to the debt maturity and project income cycle can not be matched,there is a general situation that the daily operating cash flow of financing platform can not fully guarantee the repayment of principal and interest of matured debt,and the liquidity risk is increasingly apparent.In 2018,a number of urban investment enterprises experienced substantial debt default,including not only the district and county level platforms,but also the provincial platforms controlled by the state owned assets supervision and Administration Commission of Yunnan Province and Tianjin city.At present,although governments at all levels strengthen the debt control of financing platforms,there are still some deficiencies,such as emphasizing implicit debt over platform debt,emphasizing document supervision over stock disposal,and lacking long-term monitoring mechanism.Based on the special relationship between financing platform,financial institutions and local governments,once the debt risk of financing platform breaks out,it will gradually spread rapidly to the local finance and financial system,and even have a bad impact on the macro-economy and central finance,so the debt prevention and control work of local government financing platform is imminent.Finally,this paper selects the construction of new city as the empirical research object,and studies the causes of formation and prevention and control of debt risk of new city construction.While introducing the equity structure,management framework,operation mode,financial data and financing situation of the new town construction,this paper expounds the causal relationship between the above factors and debt risk.Combined with the capital source behind the financing platform-financial revenue,debt situation and rigid expenditure of the New Town Development Zone,the improved financial early warning model is used to calculate the new two years The value of Z in urban construction shows that there is a great risk of bankruptcy in the construction of new city.In terms of financial indicators,it is mainly reflected in the low level of platform profit,insufficient ability of asset income generation,poor ability of asset realization,high debt stock and other external risk manifestations.The causes include the low marketization of business model,the company's assumption of part of the government functions,the mismatch between the sale of affordable housing and the time to repay the principal,the existence of clear shares and real debts,and the deep-seated mismatch between the rights and financial resources of the new town development zone.To prevent and control the debt risk of new town construction,we should not only properly deal with the stock debt,ensure the smooth progress of debt service,but also prevent the long-term debt risk from the business model,equity structure,regulatory environment and other aspects.The main measures include making use of the credit rating difference to do a good job in debt replacement,introducing superior state-owned capital,strengthening the internal budget,activating the existing assets,etc.,and actively accelerating the platform transformation,exploring business diversification,building a dual state-owned equity structure,establishing a debt monitoring and debt risk early warning system,accelerating the implementation of a new round of financial and tax reform,andpromoting the healthy development of local government financing platforms.