| The local government investment and fiancing platform,which could expand the scale of financing,ease the pressure of financial capital and serve the infrastructure construction better,was set up in order to solve the difficulties of fiancing by local government.The establishment of the local government investment and fiancing platform,on one hand,improves the efficiency of investment and fiancing for local government,on the other hand,it provides varied methods to resolve problems of raising capital in urban infrastructure construction as well as public social service,which contributes to improving social service standard and promoting local economic development for local government.However,by observing the construction of the local government investment and financing platform in some areas of China at this stage,it is found that certain problems in many fields still exist.In 2010,the State Council issued relevant notices,requesting a comprehensive clean-up of investment and financing platform debts,and establishing effective government debt management mechanism to prevent financial risks.Therefore,the local government should not only regulate the functions and modes of operation for the platform,but also pay attention to the supervision of its financial risks,so as to promote the healthy development of local economies better.This paper introduces the background environment of the establishment of local government investment and financing platform,outlines its functions and operation modes,and further discusses the problems by describing their development status in detail.At the same time,through the research on the financial risks that Wuhan Tourism Development & Investment Group Co.,Ltd may face in operation,it is found that the development of the investment and financing platform cannot be separated from the strong support of the local government.Accordingly,the local government should also monitor the platform strictly to better develop the local economy. |
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