Under the previous models in China, local economic development would have to have strong government financing capacity. The recent Central Government's policy of strengthening the local governments’ debt management has significantly reduced the local government debt financing space; this has also been a great challenge to the once popular

government industry fund model, while like in past the banks are facing increasingly larger participation risks. Recently, the National Audit Office of China said the local government promised to repay the debt balance of fiscal funds, which has increased to 87% compares with June 2913, and local government debt ratio (debt balance / comprehensive financial resources) has increased up to 80.5%. There is reason to believe that in the future, banks will gradually withdraw from the government industrial fund "game".