Construction Projects Investment Research

Project financing is one of the new styles of loans on the international financial market since the 1970s, after nearly 30 years' innovation and development, Project financing has become an important measure for international project construction, and raising funds. At the mid 1980s, project financing was introduced to Chinese enterprise and financial circles. It is also successfully applied at some big projects invested in home and abroad enterprises. According to some statistic, after reform and opening to the outside world, china has absorbed 350 billion us dollars investment from abroad, Wish the speedy economic development, in order to keep the 7% of the economic raise, the financial need for infra structural construction will rise increasingly, Hon to use the project financing to serve for the Chinese construction will become a popular topic for the government, enterprise and financial community.At present, project financing just began to apply in china. It develops relatively slow. It doesn't shape the law and management frame, and there is no theory and method to fit the Chinese condition and international practice. At the basis of using the experience of foreign project financing, the author has researched the financing style, project credit style and project financing risk analysis. The author has pointed out the principle, steps, method and content at which project financing should follow. The author has also analysed some models which are popular in the international financial community their merits and demerits. The article suggests the establishment of a CAPM model (capital Asset Price Model), and analyses the project financing risk. The also reveals the problem which exists at the project financing and the reason of controlling the development as he points out some suggestions, the provides basis for project funding management, state macrocontrol and policy making. It also helps people to realize and grasp the financial tool of project financing, It helps to make the new financing style to be more standardized, to make use of the project financing to serve for the economic construction.We will see when the next economic rise will come. Project financing will make more contribution to the Chinese economic construction.