A Research On Operation Of Investment&Financing For Yongzhou Urban Construction Investment And Development Company

China’s urban construction investment companies born on the period ofaccelerating urbanization. Because of strict restrictions on local governmentborrowing, the urban investment companies have been given a role of localgovernment investment and financing platform. In the process of China’s investmentand financing system improving and the new stage of China’s urbanization,government will clean up and standardize investment and financing platform. So it isof great significant that urban construction investment companies play their importantrole on raising urban construction capital, operating urban construction projects andmanaging urban asset and foster core competitiveness.Yongzhou Urban Construction Investment and Development Corporation(YUCIDC) undertakes the important task of collecting urban construction funds,operating urban construction projects and managing city assets. After more than tenyears’ development, YUCIDC have certain strength in assets size, project operatingand financing. However, because the investment and financing system is not enoughflexible, the land reserve is limited, financial resources is insufficient, YUCIDC needsurgent breakthrough in the investment and financing trategy in order to create anintegrated platform for investment and financing of urban construction. Firstly,YUCIDC needs to improve corporate governance structure, enlarge the companyassets and stengthen the cash flow and credit construction in order to enhance thestrength of the company. Secondly, YUCIDC needs to further rationalize the financingand investment system, opening up new financing channels besides the traditionalfinancing channels. The corporate also should strengthen investment and financingmanagement and guard against the company debt risk converting into governmentdebt risk.In this paper, Yongzhou urban investment and financing platform’s opportunitiesand challenges are disscussed. We also raise the construction measures of urbaninvestment and financing platform and discuss issues of Yongzhou urbaninfrastructure construction investment and financing mechanism innovation. Thepurpose of this paper is providing the theoretical and policy guidance for the reformand development of central and western China’s urban construction investmentcompany through the case of YUCIDC.