Risk Evaluation of Township-level Government Investment and Financing Platform: A Case Study of Exurb Construction in Ningbo of Zhejiang Province

Because of the risk uncertainty of local governments' investment and financing platform,finding out the cause of risk and evaluating the risk becomes the major demand for risk analysis of the local governments' investment and financing platform. Based on scientifically structured evaluation indicator system, this paper uses triangular fuzzy number method to assess the risks of local government investment and financing platform. An empirical analysis is conducted based on the specific data collected from exurb construction in Ningbo. The result shows that the risk of local government and company operation are the two main manifestations and their influences are also most far-reaching. The influences produced by strategy risk, policy risk and law risk are much smaller. For the secondary index, compliance risk, risk of strategy implementation and corporate governance risk have greater influence. In view of the result, the paper suggests that the local government determine the size with their own financial strength and formulate operation system according to the market rule. With the consummated operation system and risk control mechanisms, it is believed that the local government investment and financing platform will work more smoothly and efficiently.