2. Most of these city investment companies are unprofitable and belong to institutions or wholly state-owned companies. They realize profits through government subsidies and belong to special market operators with government nature.
3. Compared with the urbanization process of the country, the city investment company is still a new thing, and there is still a long way to go in the future, and its role will be more important.
Extended data
1. At first, the government investment and financing platform was just a carrier, and it didn't have its own assets. 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.
2. The real prosperity of local investment and financing platforms began in the second half of 2008. After the introduction of the 4 trillion investment stimulus policy, commercial banks announced their active support for national key projects and infrastructure construction.
3. In March 2009, the central bank and the China Banking Regulatory Commission jointly proposed: "Support qualified local governments to set up investment and financing platforms, issue corporate bonds, medium-term notes and other financing tools, and broaden the financing channels of matching funds for central government investment projects."
References-Baidu Encyclopedia-City Investment Company