L City Government Investment And Financing Platform Transformation Development Research

In recent years, the investing and financing platform of L municipal government fully plays its own capabilities; it has raised funds for local economic construction and social development, and played an active role in infrastructure construction and urbanization process. However, many issues of investing and financing platform tends to prominent, including low operating efficiency, opaque management, lack of hematopoietic function, which will lead to increasing fiscal risks and financial risks for government. To effectively prevent fiscal and financial risks, strengthen the investing and financing platform of local government, The central government has adopted a series of policy initiatives. In 2014, the State Council issued The Advice on Strengthening Local Government Debt Management(Government Use Only [2014]No.43), which has abolished the government financing function of the investment and financing platform company. This leads to a huge impact and challenges for the survival and future development of the L municipal governmental investing and financing platform. In order to continue to play an important role in urban economic development and infrastructure construction, the investing and financing platform of L municipal government must go through transition to respond the changes of policy environment. In this article,the persent situation and problems of L municipal government investment and financing platform were analyzed.This paper put forwards the direction and path of transition as well as proposes policy suggestion for the government to achieve the transition of investing and financing platform towards the direction of marketization and standardization.