| The continuous reform of China’s political and economic systems has led to the formation and development of platform companies for the financing of local governments,the purpose of local government to establish financing platform company is to better undertake the local government’s financial investment and financing and infrastructure construction functions.One of the effects of the financial crisis that has engulfed the world s in 2008 was the relatively relaxed economic environment in China,local government financing platform companies have seized the opportunity to expand rapidly,and their debt levels have also increased rapidly.It is undeniable that financing platform companies have made a significant contribution to the expansion of domestic aggregate demand and stable economic growth in China,but at the same time,the debt financing risks they carry have increased significantly.In 2014,"Circular No.43" was published,and the statement contained in the document that "the function of financing platform companies for local governments will be abolished" has brought new opportunities for the development of financing platform companies.While local government departments have taken appropriate policy measures on the buffer period,however,during this period,the pace of local government debt expansion,stimulated by financing demand,has not slowed since then.In July 2021,Circular No.15 clearly required that "hidden debts of local governments are strictly prohibited and local governments are not authorized to guarantee local financing platform companies." In the new political environment,it is worth thinking about the "where is the way" of municipal financing platform companies.Currently,the task of improving the leverage risk management of platform companies is very urgent,and the market-oriented transformation of platform companies is the main problem of platform companies in the coming years.The LX Company has long been at odds between value creation and state-oriented development as a legal entity of the market economy,here is a strong reliance on subsidy revenues and macro policies received by local finance departments.At the same time,changes in the external market environment in recent years have led to a sharp increase in the risk of LX’s debt financing,therefore,the improvement of debt financing risk management has also become an urgent necessity for the gradual realization of a marketoriented operation.Therefore,the improvement of debt financing risk management has also become an urgent necessity for the gradual realization of a market-oriented operation.Based on modern risk management theory,this paper is based on the basic idea of "three steps" of identifying debt financing risks,assessing debt financing risk and countermeasures for debt financing risk.This article first briefly describes the historical phase of the development and growth of platform companies;n order to effectively identify the debt financing risks of LX Company,this paper,based on the operation and financial information of LX Company and the industry policies that have changed,from the debt financing end,capital use end and debt repayment end,LX Company’s debt financing risks are fundamentally identified,using Minsky’s "financial instability hypothesis" method to determine the debt financing type of LX company,and the main factors affecting its debt financing capability are analyzed and assessed using financial analysis and field research methods;When assessing debt financing risk,the influencing factors of LX’s debt financing risk reflect the characteristics hierarchically and ambiguously,taking full account of LX Company’s leverage risk factors.A combination of analytical hierarchy(AHP)and fuzzy synthesis evaluation(FSE)is used,establishing the risk assessment system for LX debt financing and carrying out a comprehensive assessment;Given the problems and risk factors that LX has uncovered in risk identification and risk assessment,This article will propose corresponding countermeasures.. |
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