Research On The Transformation Of Local Government Investment And Financing Platform

Along with the reform of economic system, investment and financing system, the local government investment and financing platform has experienced from the establishment, development, expansion and reform of the course, especially after the four trillion economic stimulus program in 2008 led to local government investment and financing platform for the number and size of rapid expansion, the contribute to the local infrastructure and public utilities development at the same time, the hidden debt gradually revealed, could cause the financial risk of concern also forced the central government to take the necessary measures as soon as possible.On August 31,2014, the new "budget law" through the review, and in 2015, was formally implemented on January 1, one of the biggest change is to give a certain degree of creditor’s rights to local government, ministry of finance and other relevant departments under the state council and the policy of supporting regulations, for the reform of local government investment and financing platform provides policy guidance and requirements, under the new policy environment, this paper will comb to the local government investment and financing platform for the overall situation in China, analyze the effect of the new policy, and on how to reform into the development of financing platform to promote transformation are proposed.This paper includes seven parts:the first part of the introduction, mainly elaborated in this paper, the research purpose, research significance, combing the domestic and foreign research situation, includes the concept and the research background of investment and financing platform, the problems and risk factors, improvement measures and the experience of the foreign investment and financing platform of local government. The second part of the theoretical basis, including local government investment and financing platform and the theory of value, expounds the fiscal decentralization theory and principal-agent theory. The third part summarizes the main mode of being in the home and abroad are summarized, the domestic more successful model including Shanghai, Tianjin, Chongqing, Sichuan, emphasis on foreign experience, analyzes the American municipal bonds, financing lease inGermany and Japan public enterprise mode. The fourth part combed the Chinese local government investment and financing platform and the development course of investment and financing system, since 1949 since the founding of the investment and financing system and the establishment of local government investment and financing platform development, affirmation of the main achievements of investment and financing platform. And this part focuses on analyzing the problems existing in the investment and financing platform in the development, mainly including officials, who, the lack of efficiency; hidden debt, and out of control; project chaos, debt service pressure; institutions, financial risk of chaos, and aimed at problems analyze the causes, the author will cause due to four reasons:institutional defects, lack of financial capital, government’s recessive guarantee loose regulatory mechanism. The fifth part is the impact of the new budget law and the relevant policies and measures, details the main shock areas, on this basis, the construction funds from already obtained achievement, whether the worm and international experience for reference to explore the value of the investment and financing platform to continue to exist, it is also a platform to further reform and transformation of the premise. The sixth part uses Guangzhou as a case, through the problems and reform experience summary of seven investment and financing platforms to provide reference for the reform of national. The seventh part establishes a new reform policy environment transformation principle, the classification, focuses on eliminating institutional defects, both economic and social benefits, seeking truth from facts, based on national conditions, establish in principle, for the local path of reform and transition of the investment and financing platform to provide choice, mainly has the public welfare, quasi commonweal project classification management, profitability, capital to participate in, clear the stock of capital, transverse longitudinal restructuring integration, improve the regulatory system and the innovation platform for debt financing channels.Through the study can see, the policy background of the new budget law, local government investment and financing platform has the existence value, still should not negate, further the reform of the transformation is the development direction of the future, in Guangzhou city as a case to the local look overall, national investment and financing platform for the subsequent reform provides relevant policy recommendations.