On the one hand, the government uses its credit platform to improve the efficiency of the integration and utilization of government resources; On the other hand, under the background of increasingly fierce competition and high loan risk, banks are also willing to lend to investment and financing platform companies with government background to reduce financial risks. In recent years, local investment and financing platform companies have contributed to the high economic growth rate of China. Due to the unbalanced economic development in the eastern, central and western regions of China, the eastern industries need to be transformed and upgraded, and the central and western regions are eager to undertake the eastern industrial transfer. The huge investment of investment and financing platform companies in transportation and urban construction has effectively promoted China's industrial transfer and is conducive to the balanced development of China's economy.
2. The local government financing platform has greatly accelerated the urbanization process.
Most of the funds raised by investment and financing platform companies are used for urban public infrastructure construction. It can be said with certainty that without local investment and financing platform companies, there would be no rapid changes in the urban appearance of China in recent years. The great development of urbanization has provided a long-term solid foundation for local economic development, created a source of demand for industrialization, and expanded the space for rural population to transfer to cities and towns.
3. Local government investment and financing platform companies have promoted the improvement of people's livelihood.
Relying on the investment and financing platform company, the local government raised a lot of funds, a considerable part of which was invested in low-rent housing, public rental housing, shantytown renovation and other affordable housing projects, part of which was invested in the construction of public hospital facilities, educational infrastructure, cultural and sports infrastructure, water conservancy infrastructure, and part of which was invested in sewage treatment plants and pipe networks, garbage incineration plants (landfills), and water environment treatment projects. The construction and use of these projects have effectively improved people's livelihood and been welcomed by the people.
4. Local government investment and financing platform companies are also conducive to stimulating private investment.
The local government investment and financing platform company is a government enterprise with legal personality. They can attract private capital by issuing trust fund plans, corporate bonds and joint investment, give full play to the role of private capital in supporting infrastructure construction and people's livelihood projects, and achieve a better combination of short-term policy regulation and long-term mechanism of utilizing private capital.