Research On Marketization Transformation Of Local Government Platform Company

With the continuous expansion of local government debt in China,local government debt and credit risks gradually surfaced.Various regulatory agencies of the State Council have begun to regulate the financing behavior of local governments to control the scale of debts,which also leads to local government platform companies also facing the risk of liquidation,platform companies must undergo market-oriented transformation.In October 2014,Guofa No.43 was issued: First,lock in the current inventory debt to reduce or not increase;Second,regulate the financing and borrowing of local governments in the future;Third,strip off the financing function of the financing platform government.The issuance of this document stripped off the financing function of local government platform companies that provide funds to local governments,and clearly demarcated the boundary between the government and enterprises.Local government platform companies faced great pressure for transformation.In this paper,through a case study of YB Urban Construction Group,to study its current situation and existing problems,combined with its own actual situation and drawing on the development model of domestic platform companies,it provides suggestions for transformation and development.At the beginning of this article,the basic connotation and production process of local government platform companies in China are introduced in detail,and the development status and future transformation trends are briefly summarized,and the current local government platform companies at all levels are summarized.Some common and outstanding problems in construction and development are mainly manifested as one: the establishment and operation of local government platform companies are not standardized;the second is that the internal governance structure of the company is not yet perfect;the third is that the company’s operating debt repayment ability is not strong;the fourth is financing The method is very simple;Fifth,the platform company’s operation lacks a restraint mechanism.Based on the analysis of a series of common problems,YB City Construction Group was selected to conduct a case analysis,and introduced the market development status and transformation driving force of YB City Construction Group: First,the drive of macro-policy and systemic financial risk prevention and control;The second is the drive for economic development and new-type urbanization;the third is the internal drive for solving the development dilemma of the YB Urban Construction Group.After that,combined with the internal and external market transformation of YB City Construction Group,the specific feasibility of the group’s market transformation was analyzed,from the support of central and local policies,the promotion of enterprise-level reforms,the strong demand for private capital and investment markets,and The four levels of modern enterprise system and mature Lu Jin were introduced in detail,and the key points and difficulties of the market transformation of YB City Construction Group were extracted,and the operation and management models of several typical domestic platform companies were fully borrowed,and the proposed The market-oriented transformation goal of YB City Construction Group is to build a comprehensive service provider for city construction and operation.Under the guidance of the transformation goals,the Group’s market-oriented transformation method was proposed in accordance with the principles of separation of government and enterprise,project classification,risk controllability,and seeking truth from facts: First,adhere to the market-oriented positioning of the investment entity;second,integrate and optimize resources;third,realize itself Diversified development;Fourth,pay attention to the expansion of financing channels;Fifth,adopt the PPP model to participate in the construction of public infrastructure.Immediately afterwards,the paper puts forward the path selection of YB City Urban Construction Group’s market transformation: promoting group transformation,asset reorganization,governance structure and operation mode transformation,business module and financing method transformation,and market operation.The last chapter of the thesis puts forward guarantee measures for market-oriented transformation from five aspects: guarantee of policy and financial resources,guarantee of operation management,guarantee of talent team,guarantee of governance ability and improvement of risk management and control ability.