Asset Securitization In The Construction Of A City Application

Urban infrastructure is an important part which supports and drives all the industriesduring the period of the economy development, and the level of urban infrastructuredevelopment decides the width of the whole economy's development. So the bigamount investment to the infrastructure is the necessary term which holds the wholeeconomy developing with continuance, stabilization, and high speed. For a city, tostrengthen the city construction, improve the function of the infrastructure, and improvethe environment of investment is also the necessary measure to face the competitionamong the cities.During the period of "eleven five" City A will invest about 1500 billion yuan to theconstruction of road, bridge, track transport, tunnel across the Changjiang River, sewagemanagement establishment. It is difficult to get enough money to meet the demand ofsuch big construction projects by old ways in a short time. We need to find a new way tofinance the social funds, especially idle funds for the city construction.This article studies with a start of the concept of ABS, and its mechanism, then analysesthe ABS project of City A's sewage management establishment in detail. Finally wedraw a conclusion that it's feasible to do ABS project to sewage managementestablishment in the eye of its asses and future income. So the sewage managementestablishment should be the test of ABS for the city. ABS is the effective way offinancing funds to solve the problem of the money absence to the sewage managementestablishment.