A Research On The Issue Of The Risk During The Project Financing

Project Financing, as a new financing tool, was emerged in the international capital markets in 1970s and has developed into an efficient wide-used financing method in infrastructure's construction. In the mid of 1980s, China introduced Project Financing for the first time. As China's capital market opens more widely to the outside world, Project Financing gains rapid development and plays important roles in infrastructure financing. But, it also has its demerits. Long-time negotiation, a wide variety of involved parties and complicated structure lead it to being exposed to many risks and so that it is asked to implement rigid supervision and risk management during the whole financing course. But in China, Project Financing is still at the starting stage and leaves us many things to explore, so people, especially those who are affected by planned-economics lack risk consciousness. In most cases, people thinks risk arrangement or risk control as risk management by mistake, so it worth exploring the risk management of Project Financing in China and it is also very meaningful to analyze and solve our current problems in risk management of Project Financing.This paper mainly discusses the risk during the Project Financing. On the basis of roughly introducing the relevant situations of project financing, the paper has analyzed emphatically the definition, classification, risk assessment and risk judgment in project financing, risk distribution and guarantee in the distribution, and also introduced the VaR (Valve at Risk) model of appraisal of risk finally. In the article, have emphasized risk overall management and the sharing and designing of the risk, especially structure the model of two kinds of allocation of risks, has analyzed its realistic meaning.Certainly, the research result of this paper in theory is not prominent, just hope it can instructing practice, and especially hope it can spread the idea abundant embodying of overall risk management. Need more study and practice to guide and examine the VaR model that is introduced in the paper. I hope this beneficial try can be continued in my future study and relevant work, I hope that more experts pay attention to the VaR model, and do deeper research through it, making greater academic achievement.