Research On The Transformation Of Local Government Investment And Financing Companies

Local government investment and financing platform is a unique product of our economic development,which plays an important role in strengthening local construction and promoting the process of urbanization.Due to the implementation of tax sharing reform in 1994,local governments lack of financial resources.Therefore,local governments raise funds through the establishment of investment and financing platforms and invest in local construction.Since then,investment and financing platforms have made great progress in China.But up to now,the development of local government's investment and financing platform has encountered a bottleneck,and its own defects and excessive dependence on the government's dilemma are also emerging.Since 2014,the state has successively issued a number of policies to curb excessive borrowing by local governments,strengthen the management of investment and financing platforms,and focus on resolving the hidden debt risk.Its China Development No.43,No.50 and No.87 documents block the "back door" of local governments' illegal provision of credit guarantee,PPP project "explicit stock and real debt";in November 2016,the emergency response plan for local government debt risk The issuance of this national document provides a comprehensive consideration and overall guidance for the management of such funds.Therefore,the transformation of investment and financing platform is urgent.At present,the domestic research on investment and financing platform is mainly focused on risk management and performance evaluation of investment and financing platform,while the research on the development direction and transformation path of investment and financing platform is relatively few,and the research on individual case analysis is very few.Based on this situation,this paper selects a case for analysis,explores the transformation practices,causes and effects,and summarizes the transformation The author hopes to bring new ideas for the transformation of local government investment and financing platform.The first part is the introduction,which will analyze the background of the transformation of local government investment and financing platform.The secondpart introduces the related situation of local government investment and financing platform,including the concept of platform company,its distribution in China,and its main operation mode,and affirms the role of investment and financing platform in local economic development from financing funds,activating land resources,and promoting the process of urbanization.The third part introduces the background of the transformation of local government's investment and financing platform,including the problems faced by the platform during the transformation,the handling of the relationship with the government,the change of financing mode,the stripping of stock debt and the change of internal system,etc.at the same time,it analyzes the relevant domestic environment,the feasibility of the transformation of investment and financing platform,and introduces Tianjin,Chongqing and town in China Some experiences of transformation in Jiang,Shangrao and Yichun.The fourth part is the case analysis.First of all,it introduces Fuzhou Investment Development Group Co.,Ltd.from the aspects of development history,organizational structure,business operation,etc.It introduces the specific situation of Fuzhou Investment Group Co.,Ltd.in detail;secondly,it analyzes the company's transformation approach,and adopts the Institute of changing the top design,establishing mixed ownership enterprises,rationalizing the project agent relationship,and standardizing state-owned assets The second is to explore the main reasons for the transformation,from the internal and external perspectives;then from the financial perspective,the performance of the company before and after the transformation is compared,and the effectiveness of the transformation is analyzed;finally,the summary of the transformation.The fifth part is the inspiration of case study.Through combing the situation of local government investment and financing platforms and analyzing the case of Fuzhou Investment Group Co.,Ltd.,and combining the experience of other investment and financing platform transformation,this paper proposes that the platform transformation should be as follows: in terms of structure,enterprise governance structure should be improved,modern enterprise system should be established and perfected;in terms of ownership,social capital should be introduced,and mixed ownership enterprises should be established In terms of market positioning,it is necessary to transform from a government functional platform to a modern enterprise with a high degree of marketization.Under the guidance of the transformation direction,the paper puts forward the specific transformation measures.The last part is the conclusion,deficiency and prospect.Although in the current environment,there are some difficulties in the transformation,and the transformation path is still in the exploration stage,but the transformation of local government investment and financing platform is a long-term goal,in order to adapt to the new economic form,the platform must be transformed,only in this way can the sustainable development of the platform be achieved..