Is there any risk in the financing of state-owned companies in Junlian County?

The financing of state-owned companies is safe because it is directly managed by state institutions. It takes banks as the main business entity, operates according to credit rules, requires asset safety and capital return, and the risk depends on asset quality. Due to the long responsibility chain and recourse period and asymmetric information, credit financing is dominated by the judgment of a few decision makers on the project, which pushes the risk accumulation to the future. Credit financing needs the support of a developed social credit system.

Legal basis: People's Republic of China (PRC) (China) Company Law.

Article 65 The articles of association of a wholly state-owned company shall be formulated by the state-owned assets supervision and administration institution or by the board of directors and submitted to the state-owned assets supervision and administration institution for approval.

Article 66 A wholly state-owned company does not have a shareholders' meeting, and the state-owned assets supervision and administration institution shall exercise its functions and powers. The state-owned assets supervision and administration institution may authorize the board of directors of the company to exercise part of the functions and powers of the shareholders' meeting and decide on major issues of the company, but the merger, division, dissolution, increase or decrease of registered capital and issuance of corporate bonds of the company must be decided by the state-owned assets supervision and administration institution; Among them, the application for merger, division, dissolution and bankruptcy of an important wholly state-owned company shall be examined by the state-owned assets supervision and administration institution and reported to the people's government at the same level for approval. The important wholly state-owned companies mentioned in the preceding paragraph shall be determined in accordance with the provisions of the State Council.