Since 2018，In order to push local governments to establish standardized debt financing mechanism，various departments have issued a series of documents to “block the underground Channel” and resolutely prevent local governments from increasing the implicit debt. Meanwhile，they also have issued documents to promote local government bond issuance and regulate PPP financing. So urban development and investment corporations were completely stripped the functions of government financing and government credit，struggling to survive. But，the continuous deepening of fiscal and tax reform，the urban and rural construction and the policies for making up weak spots have could help urban development and investment corporations further facilitate their transformation，through putting a profound impact on the Institutional reform，development strategy and business layout of them.