Research On Financial Risk And Prevention Of Lanzhou State-owned Assets Investment Corporation Under The Background Of Market-oriented Transformation

The investment and financing platform company is an economic entity established by the local government,its departments,and its affiliated institutions through financial appropriation or land injection.However,as more and more investment and financing platform companies continue to expose problems such as large debt scales,irregular operations,and poor profitability,their financial risks have become increasingly prominent,and potential risks have also emerged for local government debt and the financial industry.In 2015,relevant policies of the State Council proposed that investment and financing platform companies should carry out market-oriented transformation.The“Notice on Regulating the Investment and Financing Behaviors of Financial Enterprises for Local Governments and State-owned Enterprises”(No.23 [ 2018 ] of the Ministry of Finance)further restricted the most common financing models of investment and financing platform companies.Therefore,under the background of market-oriented transformation,the financial risk analysis and prevention of investment and financing platform companies appear to be particularly important.This article takes Lanzhou State-owned Assets Investment Corporation as the research object,based on financial risk-related concepts,risk management theory,and government investment and financing theory,and combines investment and financing platform companies and market-oriented transformation-related concepts.The article identifies the financial risks under the background of market-oriented transformation of Lanzhou State-owned Assets Investment Corporation,evaluates the financial risks using efficacy coefficient method and the analytic hierarchy process,and finally provides corresponding prevention suggestions based on the identification and evaluation results in combination with the background of market-oriented transformation.The research in this paper finds that,first,the government's support and policies in the identification of external factors affecting financial risk have a greater impact on the financial activities of investment and financing platform companies,especially the issue of debt responsibility division and sources of debt repayment.Second,it was found in the identification of internal factors of financial risk that the asset-liability ratio of LanzhouState-owned Assets Investment Corporation exceeded the industry average in the past three years,and it was 80% higher than the industry red line in2016 and 2017.Most of the investment projects are public welfare and semi-public welfare projects with huge investment amounts.At the same time,because the contracted projects are infrastructure projects,the collection pressure is relatively high.Among other receivables,77.75%accounted for receivables due to bad debts.Third,the comprehensive financial risk assessment scores from 2016 to 2018 are all in the middle level.Solvency is at the worst level.Most of the indicators of profitability,operating capacity and growth ability are in the middle level.It shows that the financial risks of Lanzhou State-owned Assets Investment Corporation are serious,and measures need to be taken to prevent them timely.The research in this article aims to help Lanzhou State-owned Assets Investment Corporation pay attention to financial risks under the background of market-oriented transformation,and help the company's financial risk prevention.So that the company can complete the market-oriented transformation successfully.And provide references for the financial risk prevention of other similar companies.