Analysis of Financing Dilemma of Local Government Financing Platform

Abstract

With the advancement of structural deleveraging and the strengthening of regulatory policies, local government financing platform is facing a certain financing dilemma. Starting from the financing dilemma of the financing platform, this paper analyzes the specific manifestations of the financing dilemma and the external and internal causes, and on this basis explores the direction of the financing platform to break the financing dilemma and carry out the market-oriented transformation. On the basis of matching local governments’ financial and administrative powers, the paper holds that we should promote the separation of government and enterprises, optimize the business model and debt structure of the financing platform, promote the formation of market competitiveness of the financing platform, and become the market subject of self-management and self-responsibility for profits and losses.