"Large shareholder account for" Latent City Investment company receivable item incarnation "Fig leaf"

As the investment and financing platform of the local government, the City Investment Company is one of the two.　　After landing in the bond market, the city's investment company has become a public company, its relationship with local government funds, but also into the public's view.　　Recently issued "09 High-tech debt" and "09 tin issuance of debt", the issuer of the issue of accounts receivable and other receivables, in 2008 years have increased significantly, the debtor is the local government. It is not new that the city's investment company becomes the "creditor" of the local government.　　However, according to our correspondent survey, in the city of investment companies and local government funds, if the receivables are not strictly corresponding to the local government commissioned to build projects, will be hidden "large shareholder account for the" Operation Path. City Investment Company: Local government alternative "creditor" June 3, 09 often high-tech debt began to issue, the issue for the Changzhou Hi-tech Development Zone (Group) Corporation (hereinafter referred to as "often High-tech").　　09 often High-tech debt for 10-year fixed-rate bonds, issued on a scale of 1.5 billion yuan, the nominal interest rate in the first five years of the issuance of 5.2%; From the end of the fifth, the issuer can choose to raise the bond coupon rate of 0 to 100 basis points. Often high-tech for the Changzhou Hi-Tech Development Zone Management Committee (hereinafter referred to as "high-tech Zone CMC") financing platform. 2008, the high-Tech Zone Management committee to the constant High-tech increase of 974 million yuan.　　In that year, the cash outflow of the high and new operating activities was 3.404 billion yuan, which was nearly 2.1 billion yuan from 2007. In this regard, the rating report issued by the Joint Credit Assessment Limited (hereinafter referred to as "joint credit") explains: "On the one hand, the increase in the cost of cash received from the sale of goods for services, on the other hand, increases in the amount of government transactions owed." "June 4, the main underwriter of China Forest Securities to the reporter said, operating cash outflow is large, because the investment scale is bigger, the company needs to buy some building materials, pay the contractor some expenses;" The arrears are the government's payments to it, and some of the government's projects may not have been built by the usual high, and those projects need to be invested,　　The government borrows its money. " From the data, 2007, often high-tech operating cash inflow of 1.839 billion yuan, outflow of 1.314 billion yuan, 2008, often high and new inflow of 3.683 billion yuan, outflow 3.403 billion yuan.　　In the 2008, the high and new operating cash outflow rose far higher than the operating cash inflow. At the same time, often high and new receivables, also from 2007 's 1.505 billion yuan, quickly rose to 2008 of 3.239 billion yuan, an increase of 1.734 billion.　　In the rating report, the joint credit said: "Other receivables are mainly between the company and the local government." Coincidentally, the local government through the exchange of funds to occupy the high and new, remove the High-tech Zone Management Committee of the year, its size and often high-tech in 2007, the total amount of debt financing is roughly equivalent. September 13, 2007, a total of 10-year high and new issue of corporate bonds 1 billion, funds to the Changzhou elevated road Phase I project and the Changjiang Highway project. In addition, in the 2008, the often high-tech silverBank loans increased by about 1.2 billion yuan. Coincidentally。　　May 25 Issued "09 Tin through debt" Wuxi Economic Development Group Co., Ltd. (hereinafter referred to as "Wuxi"), but also become the "creditor" of the local government. As of December 31, 2008, Wuxi has issued accounts receivable and other receivables are 3.268 billion and 3.601 billion respectively.　　Among them, 3.127 billion accounts receivable and 2.999 billion other receivables debtor, is the Wuxi people's government new District Management Committee (hereinafter referred to as "Wuxi New Area CMC") Finance bureau. Wuxi issued by the audit report shows that 2.999 billion other receivables, for the agent for the removal of the land levy, aging in one year.　　The reporter inquires the cash flow statement of 2007 and 2008 of Wuxi, no matter the operating cash outflow and the investment cash outflow quantity, are less than 3 billion. Wuxi issued the debt of the contact Changsming to this reporter explained: "This is not a one-time, is accumulated over the years." (other receivables) has been moving, has been increasing. He said that the Wuxi Economic Commission will help the Government, the government returned to the company, the amount of other receivables, each month in the change.　　Financial aging, which is the time to do not change, so it is within one year. July 28, 2008, Jiangsu Suya Certified Public Accountants Co., Ltd. issued a Suya (2008]135) Audit report. According to the report, as at May 31, 2008,　　Wuxi New Area Management committee has been completed but has not yet settled the project section of 961152679.56 Yuan and the 2004-2007 's pay to township land demolition money 1418504186.3 yuan, totaling 2379656865.93 yuan; The audit conclusion is the standard without reservation. A partner of an accounting firm told reporters that the age of accounts receivable is the time of day from the date of accounting.　　In other words, the age of the other receivables is not within one year. Changsming also explained to reporters that the nearly 3 billion generations of land demolition costs of the source of funds, part of the operating income, in part, bank financing.　　He said that the demolition money itself constitutes a part of the project investment, the company in the accounting, considering the demolition only the government can do, so the demolition is defined as the government to pay.　　Receivables: "Large shareholder account" lurking in the house? June 4, according to a credit officer at a large bank, if it is a capital construction project, the local government should bear the burden of the land demolition fee, however, the infrastructure allocation of the current state will not be able to meet the needs, but in order to build a good investment environment, Sarch, transport, environmental protection facilities and other infrastructure must　　In this case, the City investment company will help local government Dechin (that is, BT mode), the government will be the project's repurchase funds included in the budget. Wuxi has assumed such a role. "09 Tin through the issuance of debt," the prospectus shows that the Wuxi new Area management Committee since 2001 commissioned by the Wuxi New District is responsible for the development of the infrastructure, and commissioned by the groupIn order to pay for the development and construction of land expropriation and demolition funds, the new District Management Committee and the OECD each year signed a clear "investment project commissioned by the contract" and "entrustment payment agreement." In order to complete the project, the city Investment company will apply to the bank for loans, or issue bonds to raise funds, but this must be to specific projects.　　Therefore, in the BT mode, the city investment company's balance sheet and will appear a certain size of receivables (accounts receivable and other receivables). "The projects we use are typically custom-made, and even if they are not, they will meet future cash flow requirements with government subsidies or government repurchase."　　"A credit person in a small bank said. If you need to levy land demolition fees, city investment companies can use bank loans to pay the related costs. "But this is the equivalent of bridging loans, and for risk avoidance, banks will make stringent demands, including the project itself, the overall size of the investment, the investment or repayment period, and the method of guarantee must be clear." The local government should issue a letter of commitment to include the repurchase money in the budget, so that the repayment source can be guaranteed.　　"The big line of credit officers said bluntly. According to the aforementioned large line of credit personnel, the receivables should be based on the BT Project, also known as the Accounts receivable pledge.　　However, if the receivables are not based on the BT project, the actual controller of the City Investment company will be used to divert funds from bank loans or debt issuance. "This ' large shareholder account ' behavior poses a certain threat to creditors because money is not used to generate cash flows and profits.　　"The above-mentioned small and medium-sized bank credit person Blunt, also may cause the project (including the public welfare class) not to start according to the progress, the Receivable account pledge also is fictitious." In fact, "the City Investment Company's accounts receivable, other receivables are more or less to the local government departments of the ledger, such as a certain development zone CMC office, project construction headquarters." A small and medium-sized bank credit person told a reporter.　　In this connection, the local government will take the funds of the City Investment Company as a part of the appropriation. A Shanghai fund trader is accustomed to this.　　In his opinion, the City investment Company is the government financing platform, because the local government financing is restricted by the law, only through the City Investment company this financing platform; "The City Investment company and the local government are one, and the local finance is a whole." "We are not too concerned about whether this is a violation of the capital, or the solvency of local governments," he said. The city's debt is the innovation that restricts the government's direct financing, there is always something grey.　　Another fund person said bluntly. The fund said the city's investment companies, even if the debt is high, if the fiscal revenue has a good outlook, will not be too worried about its risk. He said that local governments for land finance, in the second half of 2007 to 2008, few governments to sell, the 2008 report ugly is certain. The recent rise in land prices, 2009 will be better, 2010 years will be more look.