City Investment Group is a public institution. City Investment Company, called Urban Construction Investment Company in full, is the government investment and financing platform of major cities in China, which undertakes corresponding government functions and is a special market operator.
Institutions are social public organizations organized and led by state administrative organs, and the required funds are paid by the public, which mainly provide intangible production and labor services for education, science and technology, culture and health.
Development history
199 1 year, Shanghai took the lead in setting up city investment, followed by Chongqing, Guangdong and other provinces and cities. The operation mode during this period is that the government investment and financing platform is just 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. 1995, after the promulgation of the national guarantee law, this model is unsustainable: finance cannot be guaranteed, such companies do not have their own assets, and their liabilities rise and they are struggling.
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.
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." At the same time, in order to strengthen and expand the investment and financing platform, that is, the city investment company, governments at all levels have 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.
In 20 10, the national development and reform commission issued document 288 1, which clearly stipulated that 70% of the main income of city investment companies needs to come from themselves, and government subsidies can only account for 30%. This decree is forward-looking and can prevent local governments from spending too much and indirectly bring about a large-scale fiscal deficit of the central government.
The above is Bian Xiao's sharing, and I hope it will help everyone.