The Study Of Asset Securitization In Municipal Facility Construction In China

To be a developing country with accelerating economic growth, China has a great demand of Municipal Facility Construction. It's a result of the improvements of people's living condition and will have a great effect on the city's sustainable development in turn. But in the current economic system, there are still many problems, such as the low efficiency of investment subjects, the slowly improvement of the service quality, the limited financing channels and so on. Thus the whole economic system cannot satisfy the requirements of our country's construction and development. As ≤The Suggestion about Accelerating the Marketing Course of Municipal Public Industry≥ issued by Ministry of Construction and ≤The Special Marketing-Running Measures of Peking's City Frustration≥issued by Peking City people's Government these two documents come out, the discussion of this fact seems especially important.Starting with the mechanism of investment and financing, this paper analyzes the cash flow of the Municipal-Facility Construction revenue, and then proposes that Asset Securitization could be a new way of financing. On the basis of the three principles of "Asset Reorganization, "Risk Separation" and "Credit Enhancement" , we make the steady cash flow to be negotiable security to attract the investment capital, in order to solve the problem of the capital shortage of Municipal Facility Construction and the private capital entrance obstacle. Besides, this paper concretely analyzes the feasibility of the different patterns of Asset Securitization, and proposes the appropriate pattern according to the current Municipal Facility Construction, which may be helpful to the reform of Municipal Facility Construction mechanism.