The Analysis Of The Transformation Of Local Government Financing Platform Development

Since the late 1980 s and early ’90 s,the rise of local government financing platform has made a great contribution for the rapid economic development of China’s 30 years reform and opening up. But at the same time, because the defects existing in its own local government financing platform, make its disadvantages constantly exposed. In recent years, with the new normal economic slowdown, the transformation of economic development, driven by investment of traditional economic development mode is gradually changing, the extensive mode of investment and financing management is not adapt to the development of modern economy, coupled with the growing local government debt risk, the traditional pattern of government financing platform to run more and more not adapt to the needs of current economic development, in order to avoid systemic financial risk caused by local government financing platform debt, and in order to better adapt to the current economic development, the transformation of local government financing platform development is imminent. At present, the domestic scholar mainly concentrated on the study of local government financing platform by using not very comprehensive data on debt financing platform or analysing government financing platform’s risk, as well as to the government financing platform of financing, operation, internal control, and macro research, the relationship between economic growth, in fact the more systematic study about transformation of local government financing platform for the future development direction and development path is less, based on this situation, to the transformation of local government financing platform development path selection analysis, hope to be able to bring to local government financing platform research new ideas.The article from six parts to study the transformation of local government financing platform development problems:the first part is introduction, mainly on the research background and significance, research situation at domestic and abroad is analyzed, and then determine the research ideas and methods, the innovation of the paper and try to design points. The second part is the overview of local government financing platform, based on the connotation of the local government financing platform, background, the analysis of the operating model, to explore the contributions and limitations of local government financing platform, in order to understand local government financing platform comprehensively and objective. The third part is the necessity and the feasibility study of the transformation of local government financing platform development, this part emphatically analyzes the local government financing platform development faced the change of policy environment under the new "budget law" and the normal economic environment under the new urbanization, the financial risk of inflation, the new economic situation and land financial problems, in this context, the transformation of local government financing platform development is necessary. In addition, it also analysis the feasibility of transformation of local government financing platform development conditions:1, the folk capital enrichment but lack of investment channels, to introduce private capital;2, degree of marketization of our country has developed high, can operate to market;3, the corporate management mode is develop perfect and can be used for local government financing platform;4, there were plenty of experience of marketization of investment and financing platform in the world for reference. The fourth part is the developing direction of the transformation of local government financing platform and the specific measures, this part firstly emphasizes the transformation of local government financing platform development must adhere to risk control, separation of government and enterprises, the debt is transparent, the principle of seeking truth from facts, and the overall train of thought on the development of local government financing platform transformation should be followed:market-oriented, scientific and classification stratification, the local government financing platform into a diversification of investment and financing, investment and financing behavior marketization of state-owned holding companies. As a guide, the article puts forward the developing direction of the transformation of local government financing platform should be followed:1, the function orientation--local government financing platform should be gradual stripping policy financing function, become market-oriented investment company;2, ownership position--platform company should implement privatization or mixed ownership;3, market positioning--platform should be dominated by quasi commonweal infrastructure investment;4,profit model--the PPP (public-private partnerships) to enter and exit the project. Under the guidance of direction of the transformation of local government financing platform, this paper analyzes the transformation of government financing platform for the development of specific measures, and put forward related suggestions from the macroscopic and microscopic two aspects of government and the local government financing platform. The article fifth part is conclusion.The article thinks that local government financing platform has its irreplaceable contribution, there are limitations of itself, as the change of policy environment and economic environment, in order to adapt to the new development situation, also must carry on the transformation development of local government financing platform.In fact, the support of transformation of local government financing platform also has a lot of conditions, we should make good use of these conditions, choose suitable path to the transformation of local government financing platform development, realize the smooth transition of local government financing platform.