Local Government Financing Platform Company Financing Model Research

Since the adoption of reform and opening policy in China, the industrialization and urbanization has promoted the rapid development of economy and the demand of public service, especially the demand of local infrastructure, has increased enormously。In order to meet the demand of public service and promote the urban infrastructure construction’s step,governments entities at different levels are actively facilitating investment and financing activities. In the past decades, the Chinese government mainly adopted the financing way of the debt financing and the financing undertaken by the government, but in recent years, the potential risk brought by excessive use of debt financing, which may lead to a series of problems such as local debt risk and so on, has drawn considerable attention from different parties, According to the spirit of the third plenary session of the 18 th conference on comprehensively deepen the reform of the central committee of the communist party of certain major issue decision, it is necessary to strengthen local government public services,market supervision, social management, environmental protection responsibility, etc. To promote the government to buy services, the transcription management services, in general,should be introduced to the economic mechanism buying by the contract and the delegation to the society. On the basis of it, the PPP model(Public- Private Partnership, the PPP) which involves co-operations between the government and social capital should be integrated into the national level.As far as the development of the local government financing platform company is, the article analyzes the causes of the financing mode and unsustainable development and explores the financing platform company to build effective financing model. On the basis of referring relevant literature, the paper expounds the developing course of financing platform company,finance theory and the practice of foreign financing platform. Taking Qing yuan D group as an example, through the contrast of financing model and the interpretation of the current policy research, it points out that the traditional financing model has been difficult to meet the capital needs of the construction of the urbanization and explores the building has its own hematologist function and risk-sharing financing mode from the perspective of financing platform company own development.At the same time,it takes advantage of the government and social capital cooperation opportunities to achieve transformation and upgrading of the financing platform company.