According to reports, regulatory information within the department, as at present, all levels of government funding platform has more than 8,000 bank loan balance of nearly 6 trillion yuan. Project loans which nearly 5 trillion yuan, accounting for the proportion of loans financing platform over 80%. The survey found that local government financing platform companies often illegal occupation of credit funds, and even drag it not also harm the interests of banks, bringing the potential risks. Not like the business, and not authority; both invested a lot of projects, and no normal operating income; both financing and no regular source of repayment. This is the current government financing platform for the role. Operating funds, rely mainly on the different banks and shift, by the new-old, shattering, once the capital chain, immediately there will be debt risk. This is the platform of the current status of government financing. Through the establishment of government financing platform, raise funds for construction to ease tension in the contradiction of construction funds, this is a useful exploration. However, the local government's excessive use of the platform, not only from the original intention, it also brings great risks. First is the government's credit risk. Government to establish platform for the sole purpose of financing to raise capital, these companies are independent legal entities, companies do not meet the legal conditions for real companies, most of the subsidiary units of government, not only by the government or the responsible person as the relevant department heads, its financing is the basis of government credit. The so-called debt financing platform, the final analysis, government debt, financial commitment by the government responsibility to repay the debt. With the constant expansion of financing the vast majority of local financing has been completely out of the financial scale of the actual capacity, funding strand breaks may occur at any time issue. Once unable to repay maturing debt, the Government will bring great credit risk, so that the government's image suffered serious damage. The second is the risk of bank funds. As a platform for government financing, the banks in the process of cooperation with these platforms, there is information asymmetry, over-confidence in the solvency of these platforms and so on, leading to some duplication of parts of the mortgage, the virtual security and other issues, the bank funds facing more great risk. Financing platform for the Government to obtain bank loans, 80% are project loans, and these projects, the overwhelming majority of roads and other infrastructure construction, public works projects, public facilities, there is no revenue, or reimbursement from the government budget, either through the operation of land to repay. From the current actual situation of local governments, expected by the Financial reimbursement is obviously unrealistic. The only channel, is the land operation. However, more stringent land management, land supply more and more nervous, simply can not meet debt service needs, there are a lot of difficult financing platform due to repay bank debt. Have hidden a lot of risk. The third is social stability risk. Do not look at all the local government financing platform assets is large, very strong. In fact, these platforms so-called assets, the vast majority are government through the "circle" into the land assets. They called the business, is the land operation. Once the capital chain, will be faced with land compensation is not in place, the problem of demolition funds are not available, resulting in serious social instability. Fourth, protection of farmland risk. Platform for government financing to repay bank debt, it is necessary to raise funds through the operation of land, 18 million mu of arable land red line will face a great challenge, protection of cultivated land will also be increasing the risk. In short, the Government has been financing platform to the point of riding a tiger, stop, not stop; also, not out; retire, retired not out. How to resolve the government financing platform and the various risks and resolve various social contradictions that may arise, the parties concerned need to have to rise to great concern and attention.

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