China Port Asset Securitization Research

With the strong growth of Chinese economy and fast increase in the import and export of cargo transportation during the last few years, throughput of Chinese ports especially coastal ports have kept a rapid growing speed. At the same time, the contradiction of operating capacity and factual throughput is apparent, and the situation of port operation is very tense. Moreover, in many ports, there presents structural contradictions in the infrastructure construction, and the functional structure of ports couldn't satisfy the needs of economic development. The intense situation between port demand and supply there arises, to a large extent, is due to fund deficiency.The paper mainly deals with the status in quo of the domestic port demand and supply, funds resources, the financing methods of Chinese ports and the problems of the asset-backed securitization. The purpose of the paper is to provide Chinese ports with a better port financing method compared with foreign investment, bank loan and so on.First of all, the paper gives a thorough analysis of the construction, throughput capacity and throughput quantity of Chinese ports (coastal ports and freshwater ports). It includes relevant studies on port throughput quantity and main national economical indexes. Then, it analyzes the sources of funds for Chinese ports, and compares the systems and modes of investment and financing between domestic and foreign ports. It also summarizes the previous as well as the current national policies concerning investment and financing, and concludes of the financing methods for port enterprises. Secondly, it introduces the basic concepts and the history of development for asset-backed securitization, as well as the global market for asset-backed securitization. On such basis, it analyzes the reason and the feasibility of asset backed securitization for Chinese port. Some cases are also introduced to give an example to realize the asset backed securitization of Chinese port. Thirdly, the paper points out the obstacles on the way to realize the asset backed securitization. Finally, it gives the way to solve these problems and suggests Tinajin Port as a good enterprise to have a try.