Research On Financing Of The Expressway-Backed Securitization

Expressway is the core of road-net construction, the scale of expressways decides the road transportation efficiency and cost."The Eleventh-Five"elaborates the scheme that the mileage of expressway reaches 65000 kilometers and increases 24000 kilometers in five years in China. Computing according to $35 millions per kilometer, the increases of expressways all the country need about $840 billions finances. It predestines that the mode of"full finance-backed"is unadvisable and difficult under the limits of the government's financial resources at present that expressway is"quasi-public goods". The choke point of financing expressway construction stand out. Asset Securitization the construction financing could raise more civil and international funds, and make expressway construction little depend on the government and the banks.Based on examining the connotation of Expressway-Backed Securitization again, the paper defines the concept—Expressway-Backed Securitization, and expound the characteristics, principle and the operating mechanism of Expressway-Backed Securitization. Based on the problem of the choke point of financing expressway construction at present in China, this article points out several motives of Expressway-Backed Securitization. Expressway-Backed Securitization is feasible, according to existing system of statute and situation of financial market in our country. The cash flow analysis and operating mode designing of Expressway-Backed Securitization are researched as two key problems in this article. This paper recommends forecasting expressway assets value with RBF model and four feasible operating modes, including quasi-collateralization corporate bonds trust mode. Finally, after estimating and expounding the risk of Expressway-Backed Securitization, it bring up risk prevention mechanism for investors and specialized companies.Carrying out large-scale Expressway-Backed Securitization is imperative in China. The financial market gets mature every day; the supply of civil capital is large; and financial personnel are endeavoring constantly. Government should establish relevant legislation quickly and give more policy support to Expressway-Backed Securitization.