Recently, the State Council is requested to break away from the government financing platforms companies with the aim to establish local government debt financing mechanism with government bonds. This move causes significant impact to capital market and indicates that the relationship between governments and financing platform companies will undergo substantial reforms and challenges. The government is no longer an implicit guarantor and will take limited responsibilities aligning with its investment contribution. It will create a lot of opportunities for governments, debtors as well as private capitals, but the key to seize those opportunities is depending on the governments'early preparation and strategy. ANBOUND research team suggests the following approaches to reduce the risk of platform debt namely highly promote asset securitization of platform debts and the mixed ownership reform of platform companies; encourage private capitals to enter the public service industry that currently in shortage of capital supply; local governments should initiate public fund via mutual fund to strengthen the financial resources.