China's Urban Infrastructure Asset Securitization Financing Of Research

Urbanization is a trend of the contemporary economic and social development of countries in the world, its level is more a measure the main indicator of the level of a country's economic and social progress. Since Reform and Opening, as China's sustained, rapid, healthy and steady growth of the total national economy has been greatly improved, and the city's rapid development, urbanization continues to increase. World Urbanization law of development shows that with the level of urbanization of a country or region arrived 30%, the urbanization process will enter a rapid development stage. The accelerated process of urbanization mean that the demand for urban infrastructure is increasing. As a Social Overhead Capital, urban infrastructure, urban economic and social undertakings an important basis for the development of modern urban existence and development of the basic conditions. Speeding up the construction of urban infrastructure have a great significance, for improving and raising standards of living for urban residents to achieve sustainable urban development, and promote sustained healthy and harmonious development.According to "2001-2002 China Urban Development Report" estimates that around 2050, to make the level of urbanization in China reached 70%, the required inputs for urban infrastructure construction funds in about 40-50 trillion yuan,that need to invest 800 billion to 900 billion yuan each year. relying on the traditional financial investment and bank credit have been difficult to meet for such a huge demand of funds, Thus, in urban infrastructure financing bold innovation, the introduction of new ideas, new mechanisms, new ways to meet investment diversification and diversification of financing channels, give full play to the market in resource allocation of the important role of the urban infrastructure projects and capital organic integration of the market, resulting in an accelerated urbanization, the development of the core issues. This is precisely the "China's urban infrastructure asset securitization financing of research" as its theme, startting from the current urban infrastructure financing difficulties, with the principle of asset securitization as a theoretical basis, sought to construction of urban infrastructure in China to find a new channels of financing, and the concrete implementation of this approach put forward some feasible mode of operation. Therefore, this line of thought and structure as follows:The first chapter analyzes the status quo of the financing of urban infrastructure in China. This chapter starts from the definitions of urban infrastructure, according to the different nature of products and services, will be divided into operational infrastructure, quasi-operational infrastructure, infrastructure, three types of non-operating assets, and conclude that these three A total of asset classes financing characteristics:government investment in urban infrastructure construction is the main body; large-scale project financing; investors are more single, the relative concentration of financing risks. Then, by analysising several of our existing financing arrangements (financial allocations, bank loans, bonds and BOT financing, etc.), we resulted in China's current financial plight of urban infrastructure, which is mainly manifested in two aspects: First, China's the limited financial resources, urban infrastructure construction can not meet the funding needs; two difficulties of the existing modes of financing further development. And that leads out of this issue to be resolved-how to use innovative financial instruments to broaden the financing channels of urban infrastructure.Chapter II discusses the systematic theory of asset securitization. The aim is to post two chapters provide theoretical support for the analysis. This chapter focuses on the core principles of asset securitization and the three basic principles. I believe that the assets being securitized cash flow analysis should be the core of assets securitization, so to make use of asset securitization into urban infrastructure financing must be based on the cash flow which can be securitized. Meanwhile, the chapter also discuss detaily on the three main principles which are the asset reorganization, the risk of isolation and the credit enhancement.and through the chart in the form of a specific description of the general asset securitization transaction process,to provides a theoretical basis to the structure of the arrangements for the fourth chapter.Chapter III analysises the feasibility of China's urban infrastructure asset securitization in theoretical and empirical ways. This chapter provides the Ministry of Construction through analysis of data obtained in urban construction, urban infrastructure, China's implementation of the need for asset securitization. The main performance in four areas:(1) help reduce the government and the Bank in urban infrastructure financing pressures; (2) is conducive to China's urban infrastructure to absorb a lot of social capital; (3) is conducive to deepening China's urban infrastructure infrastructure investment and financing systems; (4) is conducive to the stock of urban infrastructure asset utilization. Secondly, I will be asset securitization and the existing three kinds of urban infrastructure financing (bank credit, BOT financing, capital markets, direct financing) for comparison, thus reflecting asset securitization financing models superiority. Finally, the chapter from the status quo of China's capital market investment, the characteristics of urban infrastructure, China's implementation of the securitization operation of the historical experience discussed in detail the implementation of China's current urban infrastructure asset securitization feasibility.Chapter IV has made specific mode of operation on the implementation of urban infrastructure asset securitization. According to theoretical analysis of the first three chapters, the chapter from the four areas of operation for the implementation of the securities proposed countermeasures and proposals. First of all, the author of the previous text of the classification of urban infrastructure will be operated securitization transaction structure is divided into charge mode and the stock of asset securitization municipal asset securitization model, and the use of graphs to describe their steps. Especially with regard to the stock of municipal asset securitization model of innovation, the author designed to be phased procurement model and BT recall mode, and then make up for past non-business infrastructure, unable to implement the theory of defects in the securitization operations. Secondly, the chapter also on the asset securitization transaction structure of the core issues (SPV's Establishment) discussed in this paper that the use of the trust-based SPV gain valuable experience, through state-owned asset management company consists of subsidiaries to set up the SPV would be in China the implementation of urban infrastructure asset securitization final choice. Again, the chapter studied the city's infrastructure assets in securities exposed to credit risk, transaction structure, risk, third-party risk and cash flow risk of instability. After the three kinds of risk and put forward concrete solutions. Finally, the author analyzes how the use of credit enhancement to prevent the process of securitization of credit risk, pointing out that internal credit enhancement under the premise of market-oriented operations, the government can approach external credit enhancement to provide an effective complement.This innovation consists of the following two aspects:First, this paper under the urban infrastructure products and services offered by the different nature, will be divided into operational infrastructure, quasi-operational infrastructure, infrastructure, three categories of non-operating assets. Based on this classification result, this turn of urban infrastructure asset securitization transaction structure is divided into charge mode and the stock of asset securitization municipal asset securitization model. This makes the analysis of securitization risk and credit enhancement, the two modes according to the different nature of the countermeasures and suggestions are given respectively. Compared to previous studies, this more focused analysis of the proposed measures are also more specific. For example, in analysis of future cash flows, when the risk of instability, the author pointed out that two kinds of patterns such risks for different reasons. This is because the two "asset pool" in the underlying asset is different from charging asset securitization is the right to the proceeds of urban infrastructure as the securitization of assets, while the stock of municipal asset securitization of the underlying asset reflects the government's debt. Therefore, two types of model in control of such risks, the measures taken also varied.Second, the asset securitization of urban infrastructure studies have focused mainly on infrastructure and operational aspects of the securitization in the past. The paper by designing to be phased procurement mode and recall mode of BT to make up for past non-business infrastructure, unable to implement the theory of defects in the securitization operations. Its innovative starting point is a non-operational infrastructure, to find reasonable future cash flows. Therefore, this article from government procurement contracts and buy-back contracts BT proceed in phases of government procurement funds and BT projects in phases repurchase funds as underlying asset, to create "asset pool", according to the process of implementation of the securitization of various operations. In the article, the author is also the superiority of these two models dealt with in detail, pointing out that these two models can not only alleviate the immediate payment of the Government's financial pressure, and urban infrastructure projects to meet the initial capital requirements of high demand to ensure that the project on schedule to complete the construction.