Research On Causes And Countermeasures Of Debt Risk Of CB County Government Financing Platform

Local government financing platform company is the product of China’s characteristic social form and economic system,which plays a vital role in infrastructure construction and land development.However,with the rapid development of the platform,its debt risk has gradually accumulated to an unbearable level,and the corresponding policies have gradually deepened from restricting the investment and financing behavior of the platform to forcing its comprehensive transformation.The increasingly tightening policy has started the process of platform comprehensive transformation,but at present,the vast majority of platform companies only completed the market-oriented transformation in form,but failed to fundamentally change the way of debt accumulation,and are still in debt dilemma.Through the analysis of the objective conditions such as the development history,functions and macro environment of the platform,it can be concluded that the debt risk of the platform is mainly due to the joint action of external and internal factors.The former refers to the mismatch between financial power and administrative power after the reform of tax sharing system,China’s special financial restraint policies and other macro conditions,resulting in the unavoidable debt pressure of the platform.The latter mainly refers to the urgent debt financing needs given by the platform’s own business model,which is better regulated than the former.Therefore,the essence of platform debt risk is the problem of its own business model.How to explore the business model suitable for the platform to alleviate the debt risk has both practical and theoretical research significanceIn order to study why the business model of the financing platform leads to its debt risk,firstly,by combing the literature on the debt problem of the financing platform,this paper uses a complete set of business model system to replace only one aspect of the existing research to analyze the causes of the debt problem.Secondly,it makes a structural analysis on the financial statement data of CB county government financing platform,and then describes in detail the whole business model of CB County financing platform from the theoretical level,from vocational work model to profit model to cash flow model and then to financing model,in this way to analyzes where the internal debt pressure of the platform comes from.Thirdly,based on the above case analysis,this paper summarizes the specific causes of the existing debt risk of the financing platform,which are mainly reflected in five aspects: lack of human resources,imbalance of vocational work structure,inappropriate profit core,incomplete cash management and untrue financing boundary.Finally,based on the above summary causes,the path countermeasures and suggestions suitable for the pain point are given.That is,establishing a multi-step business screening guidance system,a multi-dimensional net cash flow evaluation system,a multi-level personnel management system and a multi-channel capital operation mode.