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. Financial support is the core source of funds for the actual development of city investment companies, that is, most of the funds for infrastructure construction are generally allocated by the government. Objectively speaking, the city investment company itself belongs to the local government investment and financing platform, and the government financial support is also the main financing channel for the city investment company.
Local urban investment companies can actively pay attention to national development policies, apply for general debts and special debts from the government in combination with local development plans, or seek financial support from the higher authorities, such as general debts for sewage pipe network construction and financial interest subsidies from the higher authorities.
Policy situation of city investment company
1. Clearly distinguish and separate the debts of local governments and the debts of financing platforms, and the situation that financing platforms help local governments borrow money should be completely eliminated, so as to make the transformation of financing platforms into market-oriented operations of state-owned enterprises more rapid.
2. Local governments are not allowed to borrow money in disguise, such as using government to purchase services, ppp, various investment funds funded by the government, illegal guarantees, and commitment to repurchase. For infrastructure construction projects, local governments are strictly prohibited from purchasing services.
Issuing bonds within a certain amount is the only way for local governments to borrow money. For public welfare projects, issue unprofitable ordinary bonds for financing and profitable special bonds for financing. The former is repaid by ordinary public budget income, while the latter is repaid by relative government fund income or special income.
4. Strengthen the prevention of financial risks, strictly control the amount of liabilities, pursue the responsibility to the end, and be accountable for life.
5. While restricting the borrowing behavior of local governments, the state has also opened up some other projects, such as the development of ppp projects, government toll roads, and the reserve of pilot land.