Research On The Transformation Of Operation Mechanism Of Local Government Financing Platform

Local government financing platforms have not only raised essential funds for building the real economy and socialist economic construction in China,and promoted the process of China’s urbanization to a great extent,but also have played an active role in responding to the impact of the global financial crisis and stimulating economic recovery after the crisis.However,with the rapid expansion of local government financing platforms scale in recent years,more diverse risks have gradually been exposed to public sight,such as moral hazard and fiscal risk of local government financing platforms,the local economic fluctuation risk as well as the credit risk of commercial bank.This essay first analyses the category of local financing platform as well as their funding resources through the method of literature review,then taking the transformation of the operating mechanism as the starting point to further analyze the current issues faced by the operating mechanism of local government financing platforms,which issues are concluded from 781 copies of questionnaires horizontal and vertical crossing 4 provinces,20 different local government platform,and different hierarchy staff.Furthermore,the A financing platforms has been used as case in point to deeper discuss the substantial development path of local government financing platforms,and a series of strategies also been mentioned in follows in terms of how to innovate local government financing systems,such as broaden operating range,enhancing the degree of marketization,broadening government financing channels,establishing human resources management advance with the time,setting up risk prevention and control systems,etc.,aiming to provide theoretical reference and practical guidance for the transformation,innovation,and development of local government financing platforms as well as to better serve the construction of local economy and livelihood issues.