Risk Analysis Of Debt Financing Of Local Government Investment And Financing Platform Companies

Since the outbreak of the international financial crisis in 2008,in order to cope with the impact of the financial crisis,local government investment and financing platform are encouraged to invest in the local economic construction actively,and promote the establishment of platform companies actively and increase the amount of investment.But mortgage the ownership of state-owned resources and assets and the bank credit as the main source of debt financing mode will threaten robust operation of Chinese macro economy and make the regional fiscal burden because most of the local government financing platform companies do not have the self compensation function,.However,the theoretical research on the investment and financing platform of local government in China lags behind the development needs of local government investment and financing platform companies.The research of this paper can improve the theoretical system of debt financing risk of local government investment and financing platform.At the same time,research on the local government investment and financing platform companies debt financing risk,on the one hand can provide theoretical for the national leadership and local government make the investment and financing strategy,to take effective measures to strengthen the local government investment and financing platform's corporate governance and risk control,on the other hand can provide practical guidance for local government investment and financing platform to strengthen inner risk control.Therefore,in this paper,in order to provide effective reference for our country to effectively deal with and prevent the debt risk of the platform company,will take the Dongsheng urban construction and development investment Refco Group Ltd(hereinafter referred to as the "Dongsheng group")debt risk as the research object.Specifically,this article uses the literature research method and the case analysis method to carry on the analysis to the research content.First of all,this paper analyzes the operating mechanism of the local government investment and financing platform companies and their present situation,the performance and the causes of the debt risk.After that,this paper studies the risk of corporate bonds issued by Dongsheng group in 2012 and the debt risk of the whole company.Through the research,the debt risk problem of Dongsheng group is mainly manifested in the financial risks caused by the debt financing;the debt risk because contingent liability risk and regional economic risk.Finally,through analysis,puts forward the related countermeasure suggestions: First of all,to explore various financing channels,reduce financing cost;Second,to improve the company's profitability;third,to establish a platform company's financial risk early warning mechanism.