Research On The Transformation Of Investment And Financing Modes Of M Construction Development Group Company

The local government investment and financing platform emerged because of the special times background.In the 1990 s,I promulgated the Budget Law and related regulations on financing and lending,which restricted this aspect to a certain extent,greatly affecting the financing channels and the scale of funds of local governments.Therefore,for their own development,various localities set up investment and financing platforms.For a long period of time thereafter,this platform promoted the promotion of local economy and played a key role in the construction of urbanization.The state has not issued corresponding management regulations on financing platforms,but with the development of time,many problems have appeared.Document No.43 of Guofa [2014] pointed out that the local investment mechanism should be adjusted and the main role of the government should be avoided in relevant platforms.Under this background,the development and operation mode of local investment platform also have new changes.Platforms everywhere are already transforming.This paper mainly studies the local government investment and financing platform.On the premise of sorting out its related concepts and theories,taking M Group Company as the research object,it adopts literature research method,case study method and induction method to study the transformation of M Group Company’s financing mode from four aspects.First of all,the general situation,organizational structure and financial status of M Group are introduced,and the previous investment and financing situation of M Group is studied.It is learned that the current operating problems of M Group are as follows: low asset quality;Lack of independent decision-making ability;Low profitability of business;High potential financial risk and fiscal risk;Lack of talent and internal motivation.Then,based on the problems,the new development strategy is designed,and the internal and external environment of the company is studied and analyzed on the premise of SWOT-PEST analysis method.Finally,the paper puts forward the investment and financing transformation development strategy of M Group,which is studied from three aspects:strengthening the debt risk defense of the investment and financing platform,innovating the financing model and improving the corporate governance structure.After analyzing the internal and external environment of M Group using SWOT-PEST strategy analysis method,the author summarizes the current deficiencies of the company,and makes suggestions for the future optimization direction of the investment model of M Group based on the current deficiencies,in order to achieve the three goals set: First,to solve the current risks of M Group and avoid potential risks in the future;Second,optimize the limited financing channels of the group;Third,the investment and financing model should be innovated to ensure the development of the company,lay a foundation for the subsequent platform transformation,and effectively improve the operation level of M Company.I hope that the development strategy,specific ideas and measures pointed out in this paper can make the transformation of M company more smooth and make the development of the company more efficient.