1, development loan

After 1999, China Development Bank established a flexible credit structure. The local government bundles several planned urban construction projects together, and an agency of the local government-Urban Construction Investment Company (usually a wholly state-owned company, which is a popular financing platform for local governments at present) applies for loans as a borrower.

For the part where the fees are not enough to repay the principal and interest of the loan, the local government is required to formally promise to arrange the local financial budget at the same level and subsidize the agency company, which will use it to pay off the debts.

2. Commercial bank loans

The imitation and follow-up of development loans by commercial banks are partly for the purpose of commercialization, and partly may come from the pressure of local governments, especially in areas with underdeveloped economy and poor credit environment.

3. Trust plan

On July 18, 2002, Shanghai Aijian Trust and Investment Co., Ltd. launched the "Shanghai Outer Ring Tunnel Project Fund Trust Plan" to finance the local government financing platform in Shanghai.

Due to various reasons, the trust industry in China has always been an area with high financial risks. After six industry rectifications, it is still unable to achieve stable operation. At present, the cooperation mode between trust companies and banks is the focus of supervision by CBRC, so the trust plan mode will not be operable for a long time to come.

4. Local government bonds issued by the Ministry of Finance

In 2009, in response to the impact of the international financial crisis, the State Council agreed that the Ministry of Finance would issue 200 billion yuan of local bonds on behalf of local governments, with the name of "XX provincial government bonds in 2009 (XX issue)".

Local bonds are issued by the central government. When the local government cannot repay the debt, the central government will repay it on its behalf, which is essentially a special purpose national debt. In 20 10, the Ministry of Finance issued 200 billion yuan of local government bonds; In 20 1 1 s, the plan of the Ministry of Finance to issue local government bonds is still 200 billion yuan.

5. Local government bonds

At present, China has not issued bonds with local governments as the main body. Local government bonds to be issued, that is, bonds directly issued by local governments, are similar to the responsibility bonds in municipal bonds, and the tax revenue of local governments is the source of debt repayment funds.

6. Local government financing platform bonds

China local government financing platform bonds (or urban investment bonds) appeared in the 1990s and grew rapidly after 2008.

At present, China's local government financing platform bonds take project income as the repayment source, and most of them are guaranteed by local governments. In essence, they are "quasi-municipal" corporate bonds, similar to the yield bonds in American municipal bonds.

Second, the government voted to support the operation of the company.

Judging from the emergence of government investment and financing platform, there are three main modes of operation: public infrastructure construction, policy industry support fund and agricultural industry investment company.

(A) financing mode of public infrastructure construction

1, BOT (build-operate-transfer) mode. BOT refers to the franchise granted by the government to private enterprises (including foreign enterprises) for a certain period of time, allowing them to finance the construction and operation of specific public infrastructure, and allowing them to repay loans, recover investment and earn profits by charging users or selling products; When the concession period expires, the infrastructure will be handed over to the government free of charge.

2.TOT (transmission-operation-transmission) mode. TOT is a new development of BOT financing mode, which means that government departments or state-owned enterprises transfer the property rights and management rights of the built projects to investors within a certain period of time, and they will manage them. A financing method in which investors recover all their investment through operation within the agreed time and get a reasonable return, and return it to the government department or the original unit after the contract expires.

3.PPP (public-private partnership) model. PPP, that is, the cooperation mode between public sector and private enterprises, is an optimized project financing and implementation mode developed in public infrastructure construction. PPP mode enables government departments and private enterprises to make full use of their respective advantages, that is, to combine the social responsibility, long-term planning and coordination ability of government departments with the entrepreneurship, private funds and management efficiency of private enterprises. Compared with other financing modes, the number of participants in PPP mode projects has increased, and private enterprises have participated in infrastructure projects.

4.PFI (Private Financing Initiative) model. PFI mode refers to the investment, development, construction and operation of public projects by making use of the capital, personnel, technology and management advantages of private or private institutions. The government can buy the products and services provided by the private sector, or it can establish a joint venture or grant the private sector the privilege of charging fees, in order to solve the investment efficiency problem of infrastructure and public welfare projects.

5.ABS (asset-backed securities) mode ABS mode is a securitization financing mode supported by the assets of the project, that is, a project financing mode based on the assets owned by the project and guaranteed by the expected income brought by the project assets, and raising funds by issuing bonds in the capital market.

(B) Policy-oriented industrial support fund financing model

1, venture capital guidance fund. Venture capital guiding fund refers to a fund operated by a group of people with professional knowledge and experience in science and technology or finance, which specializes in investing in companies with development potential and rapid growth.

2. Loan risk compensation fund. The loan risk compensation fund system includes the following six aspects: First, the margin of financing platform. The government reached an agreement with the bank through the financing platform to arrange a certain amount to be transferred to the bank deposit account every year. The loss of bad debts caused by lending shall be borne by the government and banks according to the agreed proportion, and the losses borne by the government shall be written off in the loan risk compensation fund.

(C) financing model and evaluation of agricultural industry investment companies

In the aspect of agricultural industry investment, the operation of government financing platform draws lessons from the financing modes of other industrial investment companies. At present, the government agricultural industry investment companies are mainly agricultural guarantee companies, and the government's financial support for agricultural industry is still mainly agricultural subsidies and loan interest subsidies.

Supplement:

The government investment and financing platform refers to companies set up by local governments at all levels with financing as their main business purpose, including different types of urban construction investment, urban construction development, urban construction assets companies and other enterprises (institutions) as legal persons, mainly with operating income, public facilities fees and financial funds as repayment sources.