The structure and management mode of city investment company are very close to those of government agencies and institutions. City Investment Company is basically the "vest" and "clique" of local government, which undertakes the functions of financing and agent construction, and its main business is infrastructure construction, water supply, gas, public transportation and resettlement housing management.
Such units are generally the leading enterprises in the local state-owned assets system, enjoy the franchise rights of some industries, have a certain monopoly position, and their work stability is second only to that of government agencies and institutions.
Development prospect of city investment company
Under the current complicated economic background, the state will continue to stimulate domestic demand and increase investment in new infrastructure for some time. City investment company is also a tool that local governments rely on, and its main business is less affected by the market.
However, the city investment company also has shortcomings, the most obvious of which is the high debt ratio of the company. As long as the city investment company operates scientifically, it can avoid financial risks.
In the long run, city investment companies will continue to exist, and there may be mergers and acquisitions and resource integration. Because of the support of local government, the expansion of its own assets and the increase of operating cash flow, the debt problem can be effectively solved.