NADS Held "Investment and Financing Platform for Local Governments and China's Economy" Lecture (Closed Door)

On October 31, 2018, the "Investment and Financing Platform for Local Governments and China's Economy" lecture hosted by the National Academy of Development and Strategy was held in Room 815, Block A, Keyan Building in Renmin Unversity of China. The presenter is Li Hao, Executive General Manager of the Financial Products Department of Minsheng Royal Asset Management Co., Ltd.

The local government investment and financing platform company is a very special type of enterprise funded by local governments at all levels. Its main role is to assist local governments in infrastructure construction by financing from financial institutions. Mr. Li first introduced the development process of the investment and financing platform. In 1979, China’s first window company, CITIC Corporation, created China’s "political promise" model. Since the establishment of China’s first government investment and financing platform, Shanghai Jiushi Company, in 1992,  government's investment and financing platform has gradually prospered, and the implementation of the new budget law in 2015 has limited the rapid development of the government's investment and financing platform, making its development more stable. Subsequently, Mr. Li pointed out that the government's investment and financing platform is the key to China's economic leap-forward development, but the high amount of implicit debt that it brings needs attention and cannot be allowed to develop at will. Finally, Mr. Li proposed a series of methods to control the risk of government debt and the direction of future transformation of investment and financing platform companies.

The lecture was presided over by Nie Huihua, deputy director of the NADS, and Yin Zhendong, associate professor of the School of Economics of the Central University of Finance and Economics, Zhang Yuxiao, research fellow of NADS, and Zou Jingxian, research fellow of NADS, and Liu Ruiming, research fellow of NADS, and graduate students from the School of Economics attended the lecture.