The so-called local financing platform refers to the establishment initiated by the local government, through the allocation of land, equity, fees, national debt and other assets, quickly packaging a company whose assets and cash flow can meet the financing standards, supplemented by financial subsidies as repayment commitments when necessary, in order to achieve the purpose of undertaking various funds, and then applying the funds to municipal construction, public utilities and other projects with different fertility.

Generally speaking, the government financing platform refers to the state-owned enterprises invested and established by local governments, in which resources are allocated by local governments and a large amount of funds are injected into local governments. Most of them appear in the form of investment management companies, which operate as platform companies to inject funds, while local governments will release funds for local construction. However, since 2009, the state has restricted the financing of local government platform companies, and this year it is stipulated that no new loans are allowed except for housing project construction.