Research On The Risk Assessment Of Local Government Financing Platform Under The Credit Environment Mutation

With the promulgation of the new budget law and <The State Council on strengthening local government debt management advice>released, the government stripped the government background of local government financing platform, and bring credit environment mutation. After the credit environment mutation, no systematic control measures for the management of the risk of local government financing platform, although the country giving particular type of platform some transition programs, the large size of the debt and a series policy of bond replacing the stock of government debt giving devastating to the financing platform. Letting company’s risk assessment for the government financing platform of no longer finance for the government to become the object of our urgent need to study.This paper is based on the existing domestic local financing model of government financing platform and the risk assessment research. Firstly, analysis of the current local government financing platform for which the credit environment changes, due to monitor the risk under the credit environment mutation, and after risk identification, risk assessment and indicators screening, we select the traditional corporate financial indicators to build risk assessment system to study the degree of variation in the respective period of enterprise financial index to measure the size of the risk of financing platform. Secondly, determine the matter-element extension and entropy-weight method to study the risk assessment. Using matter element-extension model could monitor the risk of platform, which is change from quantitative to qualitative. Using entropy-weight method is more objective to calculate the weight, and avoiding the pitfalls of subjective analysis. Finally, taking Shanghai Jiu Shi’s as an example, we use the constructed model to assess Shanghai Jiu Shi’s risk levels and analyze the result of policy adjustment; focus on the impacts on risk control in the company, studying this period of the research can provide reference for the transformation of the direction and path of other domestic financing platform.