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What unit does the city investment company belong to?
In recent years, some city investment companies have set foot in trade business for the reasons of diversified business development, improving the company's income and cash flow level and coordinated business development. The risks related to the trading business of city investment companies mainly include the risk of commodity price fluctuation, the credit risk of counterparties and the risk of capital occupation.
The Development Course of City Investment Company
199 1 year, Shanghai took the lead in setting up city investment, followed by Chongqing, Guangdong and other provinces and cities. During this period, the operation mode, the government investment and financing platform is only a carrier, and has no assets of its own. At that time, the city investment company was mainly formed by the financial department and the construction Committee. The company's capital and project capital are allocated by the government, and the rest are loaned to the bank by financial guarantee.
1995, after the promulgation of the national guarantee law, this model is unsustainable and financial guarantee is impossible. However, such companies do not have their own assets, and their liabilities are rising and they are struggling. The real prosperity of local investment and financing platforms began in the second half of 2008. After the introduction of the 4 trillion investment stimulus policy, commercial banks announced their active support for national key projects and infrastructure construction.
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