Research On Financial Risk Analysis And Prevention And Control Of Local Government Investment And Financing Platform

Local government investment and financing platform(hereinafter referred to as "platform company")is a unique product of China's economic transition period.Platform companies directly or indirectly invest and finance in the form of independent enterprise legal person instead of the government,thus promoting urbanization and infrastructure construction in various regions.However,while promoting sustainable economic development,platform companies are also exposed to many financial risks.In recent years due to the platform of the company's business development has received the national policy tightening,local government transfer the influence of external factors such as financial pressures,plus platform company's own organization structure,scope of business,financing and other reasons,led to platform company facing liquidity risk and solvency risk,management risk,recycle funds risk,financial risk is becoming more and more prominent.With the improvement of urbanization and infrastructure in China,the number and scale of platform companies are rapidly expanding,and their important position in the economic system is gradually prominent.Therefore,the impact of financial risks of platform companies is extensive,which is in urgent need of attention from platform companies and relevant government departments.This paper takes Jiang Su Jin Guan investment and development group co.,LTD.(hereinafter referred to as "Jin Guan Company")as an example to study the financial risk analysis and prevention and control of the platform company.Firstly,the relevant overview and theoretical basis of the financial risk of the platform company are sorted out.Then,98 platform companies were selected as samples,11 financial indicators were selected,and factor analysis was used to quantify the financial risk of platform companies.Then,on the basis of introducing the operation mechanism of Jin Guan Company,the financial indicators are used to analyze the financial risks faced by Jin Guan Company,such as debt paying risk,operating risk and liquidity risk.Then,combined with the factor analysis method,a comprehensive quantitative analysis is made to draw a conclusion that the overall financial condition of Jin Guan Company is not good and explore the causes.Finally,based on the causes of financial risks of platform companies and the results of financial risk analysis of Jin Guan Company,the financial risk prevention and control enlightenment suitable for the industry of platform companies is summarized from the three levels of central government,local government and platform companies.