City investment company is the abbreviation of urban construction investment company, and it is the investment and financing platform of major cities in China. They realize profits through government subsidies and belong to special market operators with government nature.
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.
Reference Baidu Encyclopedia-City Investment Company