City investment company is the abbreviation of urban construction investment company, and it is the investment and financing platform of major cities in China. It originated from 199 1 and assumed the corresponding government functions. It is a special market operation entity. Most of these city investment companies are unprofitable and belong to public institutions or wholly state-owned companies. They realize profits through government subsidies and belong to special market operators with government nature.
The characteristics of the city investment company include management as a supplement and public welfare as the mainstay; Consistency and service characteristics. Among them, the characteristic of public welfare as the main business supplement is that most of the state-owned assets it builds or operates are urban infrastructure, which is related to the local national economy and people's livelihood, and most of them are not for profit, so the public welfare is strong.
Development history
199 1 year, Shanghai took the lead in setting up city investment, followed by Chongqing, Guangdong and other provinces and cities. During this period, the operation mode, the government investment and financing platform is only a carrier, and has no assets of its own. At that time, the city investment company was mainly formed by the financial department and the construction Committee. The company's capital and project capital are allocated by the government, and the rest are loaned to the bank by financial guarantee.
In March 2009, in order to strengthen and enlarge the investment and financing platform, that is, the city investment company, governments at all levels incorporated the assets of public enterprises and institutions into the city investment, such as water supply companies, bus companies, heating companies, gas companies and so on. , better play the role of investment and financing platform.
The above content is referenced from Baidu Encyclopedia-City Investment Company.