Research On The Transition Of Local Government Financing Platform Operation Model

In recent years,driven by a high degree of urbanization,China’s economy and society have entered a critical point of transformation and upgrading and high-quality development.The local government financing platform,a product of the economic environment with Chinese characteristics,plays an important role in accelerating the progress of urbanization and promoting the economic and social development of the local government.From a superficial perspective,the corresponding financing debt generated in the construction process is a debt issue between the platform companies and financial institutions.However,most of the pre-financing process is based on the explicit provision of the government as the premise of lending,which is essentially a government behavior involving local debt.Accompanied by The State Council "Opinions on Strengthening the management of Local government debt",namely No.43 document,local government debt has become the focus of public concern and heated discussion,and the transformation of financing platform operation mode is imminent.It is of great theoretical value and practical significance to fully study and analyze the transformation path of the operation mode of the financing platform at the key point where China focuses on preventing and properly resolving local government debt risks.Based on the historical evolution and development of the platform of local government financing,this thesis sorts out the common difficulties faced by financing platforms.Combined with the author’s actual work experience,the comparison between Cixi GT Company and Shanghai Chengtou’s 30 years of reform experience is selected for verification and analysis.By introducing the economic and financial condition of Cixi region,this thesis gives a detailed introduction to GT Company’s development and status quo,as well as the process and results of three rounds of business model transformation at different stages of the company’s development.Specifically,it explores and puts forward a feasible way to transform the operation mode of county local government financing platform from three aspects of stabilizing funds,reducing debts and seeking development,so as to provide a reference for achieving win-win cooperation and efficient interaction between the government and enterprises.