Research On The Prevention And Control Of Debe Risk Of Loacal Government Financing Platforms In The Reform Of State-owned Assets And State-owned Enterprises

The report to the 19th national congress of the communist party of China(CPC)stressed that we should resolutely fight the tough battle of preventing and defusing major social risks,poverty alleviation and pollution prevention.In order to achieve that goal,the precaution of major social risk should be placed first.Preventing risks has become the key point of our party's work at the present and future stages.At present,the risk of local governments' debt is relatively high,much of which is formed through the local government financing platforms.Local government financing platforms have greatly promoted regional economic development and urbanization construction in the case of insufficient local government financial resources.However,the huge debt and the lack of a sustainable debt repayment mechanism make the risks not negligible.Report on the work of the government in 2019 gives top priority to the reformation of state-owned enterprises under the heading of "deepen reforms in key sectors and speed up the improvement of market mechanisms",demonstrating the important role of state-owned enterprises reformation in the overall economic restructuring.This paper carries on a systematical research on the formation,present situation and causes of local government financing platforms' debt,tries to rethinking the current risk of the local government financing platform,and eventually provides the theoretical thinking and path enlightenments to reinforce the prevention and control of the risk of state-owned enterprise debt and promote the transformation of local government financing platform.Especially when local government debt control measures have been raised without restriction at the national level and after new requirements have been set for the local government's implicit debt resolution,how can local governments resolve implicit debt and ensure funding for local public infrastructure as the implicit debt increases constantly,becomes the direction and goal of the reform of local state-owned enterprises.It is an issue that needs to be studied and considered in this paper as well.I have worked in the local state-owned enterprises for many years and luckily have the opportunity to observe and participate in the new round of local government financing platform reformation.For the love of work and the interests in public administration research,I start this research based on the actual circumstances.By reviewing a large amount of literature and carrying out on-the-spot interview survey,this paper takes C city in Zhejiang province as an example,rethinks the risk of the local government financing platforms and analyses the underlying causes for this kind of debt crisis problem.This paper finds that the mainly reasons relies on the long-time shortage of local financial resources.After the global financial crisis in 2008,the Chinese government started the financial investment of 4 trillion in order to inhibit the economic recession.It is in this context that the local governments carried out a large number of infrastructure construction by raising money from the local government financing platform,causing the huge hidden debts and leading to the debt crisis of local government financing platforms.Accordingly,this paper offers solutions and policy suggestions from the perspectives of local government's "blood transfusion" function,financing platform's "hematopoiesis" function and social capital's "blood circulation activating" function,in order to provide reference for the ongoing reform of state-owned assets and state-owned enterprises,and make contribution to strengthen,optimize and expand state-owned assets.