Risk Analysis And Management Of Debt Financing Of City Investment Enterprise Under External Pressure Environment

As a kind of “quasi-municipal bonds” issued to promote urban infrastructure construction or public welfare projects,urban investment bonds are special varieties with the characteristics of both local government bonds and general corporate bonds.Since the urban investment financing platform are closely related to the local government in the daily operation process,market investors will think that the default risk of urban investment bonds will be higher than that of local government bonds and lower than that of general corporate bonds under the expectation of local government bottoms and hidden guarantees.Since 2008,under the background of stimulating the economy after the international financial crisis and under the coercion of “urban investment belief”,the scale of urban investment bonds has been continuously expanded.The rapid development not only met the financing needs of the local government,but also played an important supporting role for the local economic development.However,with the accompanying rapid growth of urban investment bonds and local government financing platforms,related problems have also been exposed,and the investment efficiency of such projects has also been reduced due to rising risks.Therefore,in order to comprehensively strengthen the management of local government debt and reduce related risks,the government has begun to strengthen the supervision of urban local government financing platforms.In 2014,the state promulgated(Document No.43),which clearly stipulated that the government’s support for urban investment platforms is indirect,strip the government financing functions of local financing platforms,and step up the resolution of local hidden debts from the central to local governments.In this context,it is of great practical significance to investigate the debt financing risk evaluation and management of urban investment companies.This thesis mainly takes A City Investment Enterprise as a case and discusses the concept of debt risk of city investment enterprise,external pressure,identification and control of risk source.Firstly,it expounds the relevant research background and significance,and reviews the domestic and foreign researches on the theory of debt risk,so as to further clarify the research ideas and methods.On the basis of expounding the concept,development history and current situation of local government financing platforms and urban investment bonds,a certain review of the current external pressure is carried out.Secondly,introduce the case of A City Investment Enterprise in Hunan Province,starting from the background,nature,industry and credit situation of the establishment of the city investment enterprise,and then analyze the existing debt situation of A City Investment Enterprise and the expected issuance of urban investment bonds.Third,on the basis of combining the actual situation of the company,the risk source of the pre-issued debt of A City Investment Enterprise is analyzed from the four perspectives of the issuer,urban investment bonds,local governments and macroscopic.Finally,on the basis of risk identification,it puts forward relevant suggestions on the risk management of pre-issued debts of A City Investment Enterprise in Hunan Province.After quantitative and qualitative analysis of the debt financing risk of A City Investment Enterprise,this thesis finds that it is mainly faced with financial operation risks at the level of issuers;it exists liquidity risk,repayment risks and others when pre-issuing urban investment bonds;it is mainly affected by the local financial situation and the account current at the local government level;the macro level is influenced by policies as well as economic cycles.This thesis hopes that through the relevant research on the risk analysis and prevention and control of debt financing of A city investment companies to improve the effectiveness of its debt financing risk management and control,reduce the possibility of debt risks and provide the theoretical basis and decision-making support for the market-oriented transformation of city investment enterprise,which could help city investment enterprise to find their own marketoriented transformation path under external pressure,so as to reduce their dependence on local governments and improve their own operating capabilities.