What does Jianfa City Investment Company do and what business does it have?

City investment company is the abbreviation of urban construction investment company, and it is the government investment and financing platform of major cities in China. Generally speaking, city investment companies are mainly engaged in urban renewal and transformation, that is, the transformation of old cities and old villages. Usually, the land acquisition and demolition we understand is a wholly-owned subsidiary of Jianfa Real Estate. Local governments and their departments and institutions are economic entities with independent legal personality, which are established through financial allocation or injection of assets such as land and equity, and engaged in the financing, investment, construction and operation of public welfare or quasi-public welfare projects formulated or entrusted by the government.

It originated in 199 1 year and assumed the corresponding government functions. It is a special market operator. Most of these city investment companies are unprofitable and belong to the nature of institutions or wholly state-owned companies. They profit from government subsidies and are special market operators of government nature. City investment company financing is divided into:

(1) entrusted loan

Entrusted loans are loans provided by customers (including government departments, enterprises, institutions, other economic organizations and individuals). Its capital, purpose, amount, term, interest rate, etc. Issue on behalf of financial institutions, supervise the use and assist in recycling. Financial institutions only charge fees, and all risks are borne by customers.

For example, it is legal to add a bank between Company A and Company B to form a loan process from Company A to the bank and then to Company B..

(II) Assignment of creditor's rights

The assignment of creditor's rights is the behavior that the contract creditor transfers all or part of its creditor's rights to a third party through agreement.

For example, Company A now has a creditor's right of 2 million yuan to Company B, but it will take 3 months for Company B to pay back the money. However, because Company A is eager to expand production and needs this 2 million yuan urgently, Company C can transfer the creditor's rights of Company A by means of creditor's rights transfer, with the transfer consideration of 2 million yuan and interest. This is no different from the direct loan of 6,543,800 yuan from Company C to Company A, but it is legal because it is a transfer of creditor's rights. I hope my answer can help you.