Research On Transformation Development Of Local Government Financing Platform

Local government financing platform plays an essential role in the capital supply of urban infrastructure and public service construction in China.However,with the expansion of its financing scale,the inherent problems and risks of the platforms also expanded.Meanwhile,in order to avoid the debt crisis caused by those local government financing platforms,relevant departments strengthen the standardized management of local government debt and financing platform,which lead to the transformation and reformation of those platforms inevitably.This paper takes Xi'an Urban Infrastructure Investment Development Co.Ltd.as an example,a lot of research are made to solve the problems by analyzing its basic situation,operational management,financial statement and sorting out the history,experiences and types of transformation of financing platforms at home and abroad.Those research aim to give some clues and inspirations on local economic and social development as well as provide references to national government financing platforms.Through researching on Xi'an Urban Infrastructure Investment Development Co.Ltd.,the company exists several problems such as the lack of standardized management,long-term development planing,diversification of financing methods,investment efficiency and risk resistance.In addition,the local government also meets the problems of wrongly positioning,blindly financing,insufficiently regulatory restrain and monotonously source of funds,etc.To address above issues,this paper offers proposal about the transformation development of Xi'an Urban Infrastructure Investment Development Co.Ltd.through classifying different financing methods from different business types.The local government should minimize the governance on financing platforms and maintain their market subjects status.In addition,local government should provide system guarantee and strong supervision in order to accelerate the transformation of the company and promoting more contribution to urban economic and social development.