Research On Debt Risk Prevention And Control Of Local Government Financing Platform

For a long time,China’s local government financing platforms at all levels have been playing the role of infrastructure construction,stimulating domestic demand and stimulating economy,which is of great significance to improve China’s urban development and improve infrastructure.Since the 2008 economic crisis,China’s central bank has significantly strengthened its regulation of financing platforms,and the phenomenon of illegal financing and excessive borrowing has been alleviated.However,due to the accumulation of a large amount of debt in the early stage,financing platforms at all levels are faced with great pressure of debt repayment,and the tightening of capital sources makes it difficult to repay their debts stably in the future.In recent years,frequent "thunder" events in the capital market reflect,to some extent,that the risk of debt default of some financing platforms has increased significantly.Therefore,it is necessary to deeply analyze the causes of debt risk of government financing platform,and study how to effectively prevent and resolve its debt risk,and promote its high-quality development.This paper first discusses the current situation of debt risk prevention and control of local government financing platforms,and expounds the performance,deficiency and possible harm of debt risk transmission of local government financing platforms.Then Z City and its main financing platform GY Company were selected as the object of empirical research,and the debt risk performance,risk causes and prevention measures of GY Company were studied in depth.On the basis of introducing the basic situation of GY Group,it evaluates its debt risk from multiple dimensions.From the perspective of the main body,the government,the financing platform and the bank should make joint efforts to prevent the debt risk of the government financing platform.From the point of content,on the one hand to reasonable disposition of the current stock of debt,to ensure smooth service,on the other hand also want from financing credit,scientific management,system building do long-term debt risk prevention,main measures include improving credit rating,optimizing the financing way,scientific internal management,the construction of government investment and financing platform debt monitoring system,construction of debt risk warning system,etc.,At the same time,a new round of fiscal and tax reform will be accelerated to promote the healthy development of government financing platforms in the region.The innovation of this paper lies in: first,the innovation of research method.This paper mainly studies the risk prevention and control of local government investment and financing platforms in China by combining qualitative and quantitative research methods.Second,the innovation of countermeasure research.Most of the past research is to establish a mechanism,perfecting the system of macro a long-term perspective,such as its implementation in cycles and uncertainty,with the expansion of the scale of the current debt financing platform and the negative impact of the policy and environment,its prevention and control of the possibility of a debt crisis is imminent,if there is a breach in the short term,the financial system of the whole area will be affected,Time and space for long-term prevention and control will be disrupted.This paper carries on the innovative research from the short-term and long-term two aspects,and puts forward the research countermeasures to prevent the short-term debt risk and long-term debt risk respectively.