The Development Of Local State-Owned Financing Platform Company And The Research Of Its Risk

In2008,The American Loan Crisis triggered by the Global Financial Crisis not only on China’s Economy caused many Adverse Effects. In order to cope with the International Financial Crisis, maintaining steady and rapid economic growth, In order to promote the development of Regional Economy, Local Government actively has set up lots of State-owned Financing Platform Company.Local State-owned Financing Platform Co. has playing an important role in the Investment and Financing of the "Capital Growth, Structure, Promoting Reform, People’s livelihood Benefits" stimulus policy, especially in the area to speed up Infrastructure Construction, Public Welfare Projects and the expansion of Domestic Demand. However, with the number of Local State-owned Financing Platform Co. and Debt dimensions expands increasingly,State-owned Financing Platform Co. also facing Internal Governance Mechanism is not perfect, the Risk of Debt, Financial Pressure increasingly aggravate such problems.This paper firstly analyzes the basic connotation of the Local State-owned Financing Platform Co., system summarized the Domestic and Foreign Scholars on the advances in studies of State-owned Financing Platform Co, and analyze the Background, development Course and Operation Mechanism of the Local State-owned Financing Platform Co. this paper also analyzes the Local State-owned Financing Platform Co. Risk Categories and Causes of Risks, finally put forward the Risk Mitigation Measures with Chengdu Longquanyi State-owned Financing Platform Co. as a case.The Research Results shows that: Local State-owned Financing Platform Co. is defined by the District level of Local Government is set up through the Financial Allocation, Allocation of Land or transfer of state-owned Resources, and the operation direction is participate in the Local Government appointed or entrusted to Infrastructure Projects or Commonweal Sex, Commonweal Project Financing, Investment, Construction and Operation, the source of repayment are mainly pay for by the Local Governments, which has an independent legal personality of the economic entity. Because the Local State-owned Financing Platform Co in the Local Investment and Financing Platform for the most basic level, a relatively small size, less "Land Income ", in addition, Local finance actual strength most tense, rely heavily on State-owned Financing Platform Co., it also increases the risk of State-owned Financing Platform Co. From this point of view, Local State-owned Financing Platform Co. is the weakest link at greatest risk of Local Financing Platform system.Comprehensive measure of Local State-owned Financing Platform Co. in Local Infrastructure Construction and the Crisis playing an active role and has accumulated huge Debts. Local Government should proceed to reform, to promote its Standardization, market Direction, eventually guiding the transformation of Development, its breed with hematopoietic Function and liquidity premium market economic Entity.