Research On Countermeasures To Improve The Financing Capacity Of K City Investment Compan

Chinese Urban Construction Investment Companies(UCIC)are the special products born due to the mismatch between the financial power and authority of local governments under China’s fiscal and taxation system.They mainly undertake the function of raising funds for the rapid development of local economy and cities,and play a role in promoting the improvement and promotion of urban infrastructure.Relying on government credit,UCIC rapidly expand their debts,while debt risks and hidden dangers continue to accumulate,and regulators continue to tighten the financing policies of UCIC,so UCIC face difficulties in refinancing.Yunnan Province(2018)issued the Three-year Action Plan for Deepening the Reform of State-owned Enterprises in Yunnan Province(2018-2020),marking the comprehensive launch of the deepening reform of state-owned enterprises in Yunnan Province.In this context,how to improve the financing ability under the reform and reorganization and the new regulatory environment is a major issue faced by UCIC in Yunnan Province,especially the prefecturelevel UCIC.K Company is a typical local government Urban Construction Investment Company in K prefecture-level city in Yunnan Province,which has the problem of insufficient financing ability.Therefore,this paper takes the financing ability of K Company as the research object.In accordance with relevant theories of enterprise financing ability and UCIC,literature research method,field research method,case analysis method and other research methods are adopted,as well as the current research results of domestic UCIC financing.This paper analyzes the financing ability,financing basic theory,and the main factors affecting the financing ability UCIC in detail.Through the analysis of the current situation of the financing ability of K Company,it is found that there are three problems in the financing ability of K Company,declining financing scale,high financing cost and insufficient financing methods,and points out the main factors restricting the financing ability of K Company: insufficient financial capacity,low credit rating,poor self-circulation function and dislocation of parent-subsidiary management relationships.Based on this,the ability of the K company financing,this paper proposes five aspects to improve the financing ability of K company,including promoting enterprise merger and reorganization,promoting credit rating improvement,applying to withdraw from the list of local government financing platforms of CBRC,straightening out the management relationship with the parent and subsidiary companies,and improving marketoriented operation mechanism.Finally,K Company realized the obvious effect of improving its financing ability,such as issuing corporate bonds for the first time,enhancing credit for subsidiary financing,and obtaining a larger comprehensive credit scale from banks.To sum up,through the research on the countermeasures for improving the financing ability of K company,this paper hopes to provide reference for the improvement of the financing ability of prefecture-level UCIC in Yunnan Province under the background of the reform of state-owned enterprises.