Investment And Financing Platform Based On Matter Element Extension Model Hunan Local Government Risk Research

As the region financial policy's executor, in the process of expanding domestic demand and increasing local infrastructure, Local governments establish effective investment and financing platforms to break the shortage of funds,and the platforms promote local economic prosperity and development, so local government need platforms. The effective investment and financing platforms are conducive to public infrastructure construction, the local government should exploit the market mechanism and mobilize the enthusiasm of all aspects. However, the risk of investment and financing platform is increasing prominent, the risk can not be ignored, which will bring harmful impact on the safety and continuity of local economy operation, also the stability of society the local governments in different rank should pay attention to this problem.This paper discusses the topic of the risk of investment and financing platform of local government in Hunan. This article begins with introduction of the investment and financing platform of local government in Hunan. The article analyzed the definition, the classification, the operation mode and its role of the platform also analyzed the definition and classification of the risk of platform. From researching on current situation and data, this paper does the practical study of the investment and financing platform of local government in Hunan. After the general description of the situation and loan of platforms, the paper analyzed the risk of platform. And then, the paper does the demonstrative analyses on the risk of platforms of local governments. The paper established the theoretical model, which is based on matter-element extension. Then, the paper does the demonstrative analyses risk of 16 samples. Through the research, we find that the situation of the risk of platforms is serious. So in the last part of this paper, the paper give the suggestion to the central government, local governments, commercial banks and investment and financing platforms to control the risk of platforms.