| Chengtou company is the main carrier of local government financing platform in China, and the most traditional and common mode of financing for the platform company is "land+finance+credit funds". Over the amount of urban construction investment widening, debt risk and crisis triggered by excessive debt financing platform caused a high degree of attention of the central government and financial regulators, which have issued a series of control policies, such as "strengthening local government debt risk management and control, regulate local financing platform" They began to aggressively clean up the financing platform, and control of the financing platform loans, leading the original financing model of the financing platform to unsustainableLarge powers of local governments in China have a so "small financial building" that local governments are unable to do as much as they would like to. The demand for local construction funds need to be solved by financing. However, the original model has been severely hampered the situation, and how to build an effective financing model has become an important issue that can not be evaded pendulum in front of local government financing platform.This paper presents the development of China’s local government financing platform, analyses the status of its financing model, existing problems and their causes, and researches on the financing platform how to build effective financing model. In reference to the literature about the development of local investment and financing platform and finance theory, the paper briefly summarized and discussed advanced experience of foreign financing platform. As X Company for example, based on relevant theories and methods, the paper pointed out that the traditional mode of " land+finance+credit funds " had been difficult to adapt to the needs of the future project investment and the company’s own development, and built the mode of "own hematopoietic+diversified financing+risk prevention mechanism". |
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