The loan risk of the hottest local financing platf

The overall or measurable and controllable loan risk of local financing platforms

the overall or measurable and controllable loan risk of local financing platforms

China Construction machinery information

Guide: the 2010 China regional financial operation report released by the people's Bank of China recently discloses the current development status of local financing platforms. By the end of 2010, there were more than 10000 local government financing platforms across the country, which was not a fast growth compared with more than 8000 previously disclosed by relevant departments at the end of 2009. But if

the 2010 China regional financial operation report released by the people's Bank of China recently disclosed the current development status of local financing platforms. By the end of 2010, there were more than 10000 local government financing platforms across the country, which was not a fast growth compared with more than 8000 previously disclosed by relevant departments at the end of 2009. However, in terms of loan scale, the growth of platform loans is not slow. The report disclosed that as of the end of last year, platform loans accounted for no more than 30% of all RMB loans. Relevant insiders said that the specific amount of platform loans was not disclosed in the report, but according to the conservative estimation that the RMB loans exceeded 45 trillion yuan at the end of last year, the scale of platform loans has also exceeded 10 trillion yuan, far exceeding the scale of financing platform loans of more than 7 trillion yuan as of the end of June last year disclosed in the CBRC's 2010 annual report. For a time, the market has paid general attention to the growth scale of local financing platforms in the past six months

in this regard, experts pointed out that the differences in statistical standards and caliber of different departments may lead to differences in calculating the scale of platform loans. Guotianyong, director of the China Banking Research Center at the Central University of Finance and economics, said: "For a long time, there has been controversy in the industry and theoretical circles about how to frame the scale of local government financing platforms. However, in any case, the growth of the scale of platform loans should be positive, and the market pays high attention to this, mainly because the scale of the platform and the related risk problems it may cause will have an important impact on the market and future economic development. Have you really investigated on the spot?"

since last year, loans from local government financing platforms have become one of the bank credit risks most valued by regulators. Not only has the relevant policy documents been issued at the State Council level, but the CBRC and other ministries and commissions have also increased the risk supervision of loans from local financing platforms. According to the China Banking Regulatory Commission's 2010 annual report released at the end of March this year, the clearing and standardization of local financing platform loans has been preliminarily promoted. However, due to the high total amount of platform loans, wide coverage and complex structure, the task of clearing and resolving is arduous, and the risks that may be brought about by a new round of investment impulse deserve more attention. The China Banking Regulatory Commission (CBRC) issued a new policy not long ago, requiring the management of loans from local financing platforms to be effectively done this year. In this "notice on effectively doing a good job in the risk supervision of loans from local government financing platforms in 2011", the CBRC has issued detailed policies from the management of new platform loans to the rectification of existing platform loans, as well as the risk monitoring, accountability and punishment of platform loans

according to the disclosure of the central bank report, the loan risk of local financing platforms is generally measurable and controllable. The risk management policy of financial institutions for loans from local government financing platforms has gradually shifted from over reliance on local government credit to the implementation of mortgage and pledge guarantee measures. The survey shows that the current loans to local government financing platforms are mainly in the form of mortgage and pledge, and the proportion of loans issued by credit has declined. More than 50% of the loans from local government financing platforms are invested in roads and municipal infrastructure. The financing level of local governments in some provinces has broken through the 5MW level, and the concentration of loans from large-scale wind turbine blade preparation process units to land reserves has eased

at the end of 2010, the loan growth rate of local financing platforms in many provinces and cities fell from more than 50% to less than 20%. The survey also showed that the clean-up and standardization of local government financing platforms in various regions had been effectively promoted, and the continued high growth of loans from local government financing platforms in 2010 had eased. Compared with the end of last year, the loan growth rate of local government financing platforms in many provinces and cities fell significantly at the end of 2010, from more than 50% to less than 20%. According to the provisions of the State Council documents, public welfare project financing platform companies that rely on financial funds to repay their debts have been highlighted and standardized, and loans have contracted steadily. ICBC analysts believe that the rapid expansion of local financing platforms in the early stage has eased, and the loan growth rate and structure have become increasingly reasonable

analysts believe that at present, we should focus on the possibility that the debt default risk of financing platforms may be superimposed and amplified in the next two years. Most of the loans from local financing platforms are medium and long-term loans, and the risk exposure lags behind. The problems will appear in the next three to five years, so we need to be prepared at present

prolong tool life; To improve the critical cutting depth of the transition between brittle and ductile domains, guotianyong said that at present, the debt situation of local government financing platforms is extremely complex. In addition to bank loans, it is also financed through financial management, trust and other businesses. There are large differences in asset structure. It is unrealistic to clear the debt in a single way, such as asset restructuring or divestiture. Therefore, the current market rumors about debt restructuring obviously sound unrealistic. It is estimated that the current speculation about local debt liquidation is only in the discussion stage, and it is unlikely to be mentioned at the operational level in a short time. At present, it is a good thing to admit that there are problems in the debts of some local government financing platforms, and have some discussions to find the optimal solution. But first of all, we should clearly realize that no matter what plan is adopted, certain losses will inevitably occur. Therefore, the most important thing at present is not what method should be adopted in the future. The first thing we should discuss is whether to let the bank bear the losses if they do occur, Or will the central government and local governments bear part of the losses? Therefore, the current discussion on how to deal with the risks of local government financing platforms is far more important and valuable than the discussion. He further pointed out that at present, all departments and institutions are still in the stage of finding problems and reaching a consensus on natep's fund operation for 18 months. It is also necessary to further evaluate their respective risk-taking capabilities and resolve them by classification. The future risk resolution and standardized governance depend on the current work results, but they all need time

it is noted that the central bank's report warns of the risks in the operation of a large amount of local financing and the lack of sustainable development capacity. At the same time, it also states that during the "12th Five Year Plan" period, China will continue to promote industrialization, urbanization and agricultural modernization at the same time, and the contradiction between the sustained and rapid growth of the demand for public utilities and the relative lack of financial resources of local governments will exist for a long time. It is necessary to further clean up and standardize local government financing platforms and effectively prevent systemic risks; More importantly, we should channel the demand for local construction funds, and actively explore institutional arrangements for local governments to strengthen debt management through market-oriented financing. Carefully study and demonstrate the financing mode of municipal bonds issued by local governments, and change the financing pattern of local government financing platforms based on bank loans