Analysis On The Operation Model Marketization Transformation Of Local Government Financing Platform In China

The local government financing platform is the product of my country’s specific period and policy conditions.The local government financing platform occupies an important position in my country’s modern economy.Looking back on its development history over the past 30 years,it can be said that it has experienced many twists and turns.The local government financing platform originated from the tax-sharing system reform in 1994 and developed rapidly during the two economic crises.The rise of local government financing platforms has effectively solved the problem of insufficient local government finances,provided the necessary funds for local development,filled the funding gap of local governments,and played an important role in strengthening public infrastructure construction and promoting urbanization development.However,with the continuous advancement of the local modernization process,the defects of the local government financing platform are gradually exposed.The rapid development of local government financing platforms not only meets the government’s capital needs,but also increases the local hidden debts.This not only puts enormous pressure on local finance,but also seriously affects the credit of local governments and the health and stability of the financial market.In order to protect the government’s credit and maintain the stability of the financial market,my country proposed the concept of market-oriented transformation of local government financing platforms in2010,and issued the Guofa No.43 document in 2014.The transformation of the financing platform was officially implemented.Immediately afterwards,a series of normative documents were issued successively,requiring the stripping of the government functions of local government financing platforms,prohibiting local governments from providing explicit guarantees to local government financing platforms,and requiring local government financing platforms to gradually realize market-oriented transformation.In this context,the original operating model of the local government financing platform is no longer applicable,and the market-oriented transformation of the operating model has become the trend of its sustainable development.At present,domestic research on local government financing platforms mainly focuses on the direction and suggestions of market-oriented transformation,and there are few studies on how to carry out the market-oriented transformation of operating models.Therefore,based on this situation,this thesis adopts the method of case analysis combined with existing theories to analyze the motivation,path and effect of the market-oriented transformation of Hefei Construction Investment’s operation mode.new ideas.First of all,after reading and sorting out relevant literature,this thesis summarizes the three aspects of the establishment of local government financing platforms,the existing problems and transformation,and defines the marketization of local government financing platforms and their operating models,and analyzes them as a whole.The universal motivation and specific implementation path of the market-oriented transformation of the operation mode of local government financing platform are discussed.At the same time,three theories of public goods theory,regional finance theory and principal-agent theory are selected as the theoretical basis of the full text;The research object introduces the basic situation,operation status and regional development status of Hefei Construction Investment,and analyzes the external and internal reasons for the transformation of Hefei Construction Investment and the specific path of transformation implementation;Comparing companies,a horizontal and vertical comparative analysis is made on the effect of the market-oriented transformation of the operation mode of Hefei Construction Investment from the perspectives of financial performance,investment and financing efficiency,and internal management system.The research conclusion of transformation,and draws the research enlightenment of market transformation.By analyzing the case of market-oriented transformation of Hefei construction investment operation mode,this thesis summarizes the following research conclusions: first,the operation mode of combining industry and financial resources is the core of the platform transformation path;Second,the success of transformation is the result of the joint action of the platform itself and the external environment;Third,the market-oriented transformation has consolidated the comprehensive strength of platform enterprises.On this basis,the following research enlightenment is obtained: first,select the appropriate transformation mode to match the positioning needs of the platform itself;Second,market-oriented transformation should clarify the relationship between government and enterprises and realize market-oriented operation;Third,the internal management of the platform itself cannot be ignored while market-oriented transformation;Fourth,market-oriented transformation needs to pay attention to the improvement of investment and financing mechanism and strengthen capital operation.