CITIC Securities: Speeding up the transformation of urban investment, is it a risk or an opportunity for the local government?

On June 17, a research report from the Citic Securities Mingming team pointed out that the transformation of local government debt bonds is steadily advancing, and related effects are continuing to show. The growth rate of interest-bearing debts in urban investment platforms remains low, the debt structure continues to improve, and at the same time, the repayment situation of enterprises has improved, steadily enhancing the platform's "hematopoietic ability." With policies increasingly emphasizing the transformation and development of urban investment platforms, equity investment in these platforms is accelerating and is expected to become an important lever for the future development of the platforms. However, the advancement of the transformation of local government debt bonds also has a certain impact on the original business of urban investment platforms, as the inventory scale of these platforms continues to adjust, and the scale of construction projects under construction continues to decline.