It’s not impossible. There are no clear provisions in existing laws and the Company Law. In fact, many trust companies and investment companies have government backgrounds, and it’s just a tactic. The same goes for China Investment Group, the most famous company in our country! It is not news that the government is setting up a stage and trade is a drama. However, to sing the "play" well, you need to carefully consider the following issues. If you solve them, there will be no problems.

The success of local government investment and financing platforms has its objective conditions, a mature market environment, a standardized governance structure, and a group of proficient talents. The development of local government investment and financing platforms cannot be blind. In some counties and districts with poor economic foundations, investment and financing platforms must pay attention to risk control and cannot blindly expand their scale. Financing platforms without operating projects must be abolished as soon as possible. At the same time, the direction of government investment and financing must also be regulated, and public welfare must be adhered to and moderate profits must be made, but profits must not be blindly pursued, especially for some real estate projects, to achieve a balance between profit and public welfare.

(2) Main policy recommendations

1. Straighten out the management mechanism of platform companies and improve the standardized construction of local government investment and financing platforms

First, explore Clean up the family fortunes and integrate the investment and financing platform companies of local governments (especially counties and districts). For some cities and counties where the setup of investment and financing platforms is chaotic, each department has established platform companies separately, and the market operation is not standardized, it is recommended that the city and county governments authorize the city and county governments, take the lead in the financial department, and jointly with the competent departments of each platform company to conduct local government-guaranteed financing The platform conducts a thorough inventory and integration to find out the assets and liabilities of each platform company, eliminates those without project qualifications, and reorganizes and integrates those with overlapping functions. Some financing platforms have small assets and insufficient or empty capital. It is necessary to integrate different types of financing platforms according to projects, strengthen capital strength, unify management, and operate by projects. For districts and counties with weak financial resources, in principle, only one investment and financing platform should be retained, and municipal direct financing platforms should also be appropriately centralized to maintain total control.

Second, we must improve the governance structure of platform companies. To change the past situation of just adding a brand to the business, it is necessary to clarify the nature of the enterprise, cancel the investment and financing platforms with the attributes of government agencies and institutions, and form a special investment and financing company. As an independently operating legal entity, investment and financing companies must operate independently in accordance with the law, be responsible for their own profits and losses, and bear their own risks in accordance with the principles of separation of management and management, separation of government from enterprises, and separation of government capital. It is necessary to improve the corporate governance structure of the company. Where conditions permit or business practices are regulated, a board of directors, management, and board of supervisors must be set up in accordance with the requirements of the Company Law, relevant procedures should be formulated, the work responsibilities of all parties should be clarified, and a scientific, democratic, and efficient decision-making, implementation, and supervision mechanism should be established. For investment and financing companies that do not have a board of directors, the company manager's office will exercise the powers of the board of directors on behalf of the company.

Third, we must change our business philosophy and arrange investment directions in accordance with market-oriented principles. The peak period driven by government-oriented investment stimulus has basically ended in the first half of 2009, and the proportion of new loans to government investment and financing platforms in the balance is gradually declining. Starting from the fourth quarter of 2009, the focus of government investment will shift from scale expansion to structural adjustment. Therefore, the next stage of investment and financing platform loan investment must comply with the trend of optimizing investment structure, improving investment efficiency, giving full play to the role of investment in "structural adjustment", and must comply with the principle of optimizing resource allocation. On the one hand, it is necessary to appropriately narrow the investment scope of government investment and financing platforms, and leave to the market what can be operated. On the other hand, market-oriented means must be used to guide the new credit resources of government investment and financing platforms, taking into account both profitability and Public welfare.

2. Give full play to the restraint and supervision mechanism of commercial banks and strengthen the market’s guidance of government investment

As the main source of funds for local government investment and financing platforms, banks are closely related to investment and financing platforms and local governments. They not only belong to the same interests, but also should be an important means to restrict the behavior of platform companies. Local governments must work closely with banks to avoid financial risks.

First, adhere to the implementation of prudent lending principles.

Banking institutions must strictly enforce loan access conditions and not lower standards for granting loans. They must strictly implement the national policy of maintaining and suppressing credit. When approving loans, they must conscientiously implement national regulations on project capital management. Loans that are required by the regulations must not be loaned; for government-led public welfare non-profit projects, banking institutions should carefully calculate the local government’s financial situation and the feasibility of achieving expected fiscal growth, and strive for the government to clearly allocate a fixed amount of fiscal funds sufficient for repayment; for land The value of pledges and equity pledges should be dynamically assessed, and new guarantee methods should be implemented in a timely manner if the land value depreciates seriously within a certain period to avoid excessive risk exposure; in view of the current rapid growth of government investment and financing platform loans, banks Regulatory authorities should intensify the supervision of financing platform loan risks, and conduct targeted and timely on-site inspections of institutions and regions where financing platform loans have increased rapidly.

Second, improve the management of loans by financial institutions to government investment and financing platforms. Vigorously promote syndicated loans, enhance information communication among banks, establish a profit-sharing and risk-sharing mechanism, change the lack of communication between banks and the inability to fully understand the status of enterprises, and jointly prevent government investment Financing platform credit and business risks. Regulatory departments should actively exert their supervision and coordination functions, guide financial institutions to strengthen communication, realize information sharing, increase the overall voice of banks, and achieve credit sustainability. Strengthen supervision over the use of loans by local investment and financing platforms. Loans provided by commercial banks to local investment and financing platforms should be earmarked and local investment and financing platforms should be prevented from misappropriating the loaned funds arbitrarily between projects or even between platforms.

Third, strengthen information disclosure by platform companies. The transparency of the use of loans by local investment and financing platforms should be increased, and the scope of information disclosed should be clearly disclosed, including the platform's capital status, liability scale, basic information on undertaking construction projects, project loans, project guarantees, and use of loan funds, etc. Through information disclosure, we will strengthen the supervision of investors and lending banks on the platform and improve the risk control mechanism for local investment and financing platforms.

Fourth, diversify financing channels. We should actively study to reduce the proportion of credit financing in government investment and financing platforms, adjust the financing structure, disperse financing risks, and reduce financing costs. We should actively expand financing channels, explore project financing, private financing, equity financing, debt financing and other methods, and further improve On the basis of the credit rating system and risk pricing mechanism, government investment and financing platforms with higher credit and larger assets are encouraged to raise funds in a market-oriented manner through the issuance of short-term financing bonds, medium-term notes, corporate bonds, etc. in the inter-bank market.

^_^... This question of yours has consumed a lot of my brain cells. As your business grows, just send me some walnuts to nourish you. ...Haha, as long as you have resources and connections and best friends, just go for it! Wish you good luck...Walnuts can be sent to zhz1839@126.com, hehehe

As for the follow-up questions, you need to be cautious. If you approve the construction land in this way, it is suspected of violating the rules. However, you can rent some office space, preferably in an existing building (one that can be modified or renovated). Think of more solutions, carefully study the laws and government regulations involved, and ask some "old advisers" for advice. Sometimes, listening to someone's words is better than ten years of reading. ...Things in China are very interesting. The process may or may not be tortuous, but the future is bright... Hee hee hee.