Research On Highway Asset Securitization Model In China

Presently, China' highway construction has entered a most rapid development period since the PRC come into existence. According to the government's highway network development plan, we will develop highway with very rapid speed in even a long term of feature. It can hardly meet the mushroom requirement of highway development if we merely depend on financial fund from national banks or credit financing. It has become a very important problem that need dealing with by our economy operators to efficiently exploit financing channel for raising plenty of highway developing funds, which will assure persistent and healthy developing economy of our country.Asset Securitization is one of the most important financial innovations in the world, it has been one of the hottest point studied by economics scholar in theory recently. Some attempt was made to apply it on housing mortgage loan securitization, credit asset securitization, and infrastructure asset securitization etc. Based on the asset securitization research achievement of international and domestic experts, the article focuses on the actual problems in China that there are many difficulties on large-scale fundraising for highway construction and the asset securitization business is hard to perform in our country, and try to study and discuss on asset securitization model and its securities model selection of China's highway.Firstly, the author started with the basic theory of asset securitization, and elaborated the essential character, applying background, action mechanism, operating risk on Chinese highway asset securitization. Subsequently, we carefully studied the instauration foundation, processing character, and operating structure on some existing securities model in China, and pointed out their respective application limitation. Ulteriorly, we put forward a most applicable asset securitization model which well gear with the fact of China's highway financing - securities entrust. We also demonstratively studied the model from different aspect, such as adoption significance, feasibility, operational flow, and etc. Finally, a summary frame was designed on application of securities entrust model at the end of this paper.