Hebei Province Local Government Financing Platform Risk Analysis And Prevention Countermeasures

At this stage,China is in a critical period of urbanization and industrialization.In addition to the financial crisis in 2008,in recent years,China's central government has implemented expansionary fiscal and monetary policies and increased infrastructure and infrastructure development at the central and local levels.Investment,the funding gap for local government support is huge.Therefore,local governments at all levels use debt financing to promote the development of the local economy.To this end,a large number of local government financing platforms have been established to meet the needs of local governments for funding.The existence of local government financing platforms has,to some extent,provided a solution to the shortage of local government funds and has achieved good results.However,local government financing platforms have inherent defects such as non-standardization,and many risks and problems have emerged in the course of operation.Local government financing platforms,as an important part of the funding sources for local government infrastructure construction,will have an impact on the development and advancement of China's urbanization and industrialization process once a problem arises.It will have a negative impact on local finance and even the entire country's economic development.In this paper,through combing relevant theories of local and local government financing platform risk management and summarizing related management experience,this paper expounds the status quo of Hebei local government investment and financing platform and analyzes its existing risks.Analyze the causes of risk formation,such as over-reliance on land revenues,over-positioning of the platform,oversight of regulatory mechanisms,etc.;and put forward countermeasures against risks of local government financing platforms in Hebei Province from the government and market perspectives.Reforming the performance appraisal system,accelerating the transformation and development of local government financing platforms,and introducing a mechanism for credit default swaps;with a view to reducing the risk of local government financing platforms in Hebei Province and promoting the sounddevelopment of local government financing platforms in Hebei Province.