Research On The Market-oriented Transformation And Development Of Local Financing Platform

At the end of the last century,China’s central government shared tax revenue with local governments and entered the period of tax-sharing system.In 1994,the state promulgated the Budget Law,which clearly stipulates that local governments are not allowed to issue bonds for financing.In order to support local infrastructure construction and urban economic development,local governments set up financing platform companies as "agents" of the government,and under the dual pressure of the revenue being turned over to the central government and the local government unable to issue bonds to obtain financial support,as an independent legal person of enterprises,the local government can give full play to its credit and market power to raise funds from the capital market for infrastructure project construction.In the past two decades,the local financing platform companies have played an important role in local urban construction and economic development,but they have also exposed some risks and chaos,Including the continued expansion of debt scale,debt repayment risk,a single mode of operation,lack of market competitiveness and so on.In order to prevent disorderly and a series of risks of local financing platforms,Since 2010,the state issued document No.19,the banking regulatory agency issued document No.10,the Ministry of Finance issued document No.412,until document No.43 issued in2014.to strengthen the supervision of platform companies,and require local financing platform companies that have the conditions for market-oriented transformation to transform and develop according to the laws of market competition and their own needs at the same time.At the end of 2012,the Management Committee of Gui’an New Area funded the establishment of Gui’an New Area Development and Investment Co.,Ltd.As a financing platform for local governments,the company began to transform into a market-oriented company in 2017.Now,Taking the company as the main object of study,this paper analyzes the financial statements before and after the company’s transformation from the financial perspective by using the financial analysis method,so as to study the effectiveness and evaluation effect of the company’s transformation,find out the key problems that restrict the development,then use SWOT model to analyze the company’s internal and external environment and put forward ideas,according to the results of analysis to propose specific solutions and guarantee conditions.It is found that the key factors affecting the effectiveness of the transformation of local financing platform companies are the scientific formulation of the strategy,the rationality of the factor structure,the distinctiveness of the competitive advantage and the matching of the management ability,the solution is to achieve transformational development by optimizing strategies,elements,operations,and management systems,supported by external policies and endogenous factors.We will carry out strategic restructuring.By studying the marketization transformation of company,this paper not only helps the company to find out the shortcomings,proposes the solution,and provides the reference for the company or other financing platform companies,it also provides reference materials for other scholars to study the transformation of local financing platform companies.