A Study On Debt Risk Management Of Local Government Financing Platform Companies

As an important lever and financing tool for local governments to achieve political functions,local government financing platform companies have made tremendous contributions to rapid growth of the local economy,strengthening infrastructure construction,and improving the level of public product services.However,in recent years,the significant increase in the number and debt scale of local government financing platform companies has led to a large accumulation of debt risks.As China’s economy has entered a high-quality development stage,Higher requirements have been put forward for platform companies to digest existing debts and control new debts in the process of economic development and reform,transformation and upgrading.The theme of this article is the study of debt risk management for local government financing platform companies,which is an important topic that is in line with the trend of China’s social and economic development and has research significance.This paper is based on recent research theories and achievements both domestically and internationally,as well as a series of national policies from encouragement to tightening for local government financing platform companies.The research object is G Company,a local government financing platform company,and a case study of debt risk management is conducted.The research topic is the full process debt risk management of platform companies from debt risk identification,risk assessment,and risk control.The main research and conclusions are as follows:Conduct a full process debt risk identification for Company G,select relevant indicators based on various comprehensive factors that affect the company’s risk,and use Fuzzy Analytic Hierarchy Process to construct a debt risk assessment model that conforms to the characteristics of local government financing platform companies.The evaluation results indicate that the debt risk of Company G is at a moderate level,and analyze the specific reasons for the aggregation of debt risk points of Company G based on the risk assessment results,Propose effective suggestions for platform companies to prevent debt risks and carry out risk control.This article further enriches the research on debt risk management of local government financing platform companies,providing reference and ideas for similar platform companies to carry out debt risk management and market-oriented transformation.