The government needs to transform the land into a series of infrastructure, such as selling land, building houses, roads, hospitals, schools and so on. However, there is a lack of money, so at this time, the government financing platform appeared and became a platform for the agent to do these things.
The rest is the government financing platform to raise funds from the society, which can be loans from financial institutions or the participation of social capital.
Government investment and financing platforms are generally established by local governments and their departments and institutions through financial allocation or injection of assets such as land and equity. Therefore, its management organization may be the government at the same level or some government departments. The most common management mode is that the government at the same level decides the positioning and development direction of platform enterprises; The state-owned assets management department authorized by the government is responsible for maintaining and increasing the value of state-owned assets of platform enterprises and evaluating their operating performance; The organization department is responsible for the appointment and promotion assessment of the leading bodies of platform enterprises; Industry authorities are responsible for the business management of platform enterprises.
As for financing, because of government support and policy guarantee, it is often favored by bank credit funds and supported by financial policies. In addition, the financing platform can also attract social capital through various channels such as equity financing, bond financing, franchising, asset transfer and project financing. Taking Chongqing Chengtou as an example, Chongqing Chengtou, with the functions of "urban land reserve center" and "main account of road and bridge construction fund balance" entrusted by the government, has gradually formed four self-financing sources: land realization income, financial allocation injection, road and bridge annual ticket income and equity investment income.
On behalf of the government, the government financing platform performs the investment, construction and management responsibilities of major urban infrastructure projects, or provides financial support for the development of specific industries such as transportation, taxation, environment, energy and cultural tourism. , naturally derived the function of financing social funds, investing in infrastructure and managing urban assets. Generally, large-scale government investment and financing platform companies set up a number of specialized subsidiaries closely related to their main business through effective asset integration and reorganization under the group company through property rights ties, and implement hierarchical management and separate operations.