1. Repayment risk: After the city investment company advances the funds on behalf of the government, the government needs to repay the funds according to the agreed time and amount. However, if the government fails to repay on time or the repayment amount is insufficient, the city investment company may face the risk that the funds cannot be recovered in time or even the principal and interest will be lost.
2. Policy risk: The projects that the city investment company advances funds on behalf of the government are usually related to policies. If the policy changes or the government's support for the project weakens, the city investment company may face the risk that the funds cannot be recovered or the income will decline.