City Investment Company originated in the early 1990s. The state requires the separation of government from enterprise, and the government can no longer directly carry out urban infrastructure construction and real estate development, so it divests the government's functions to the city investment company. Generally speaking, the city investment company has a deep government background and strong economic strength.
Development history
199 1 year, Shanghai took the lead in setting up city investment, followed by Chongqing, Guangdong and other provinces and cities. During this period, the operation mode, the government investment and financing platform is only 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.
Reference to the above content: Baidu Encyclopedia-City Investment Company