Real Options On Analysis Of Key Risks In China’s Ppp Project’s

Economic development, infrastructure needs to be the cornerstone. From the reform and opening up, China’s economy has developed rapidly, but the relatively backward infrastructure is emerging as an obstacle to economic development. Infrastructure development requires huge investment, huge investment in a strong pressure to the Chinese Government. Therefore, both to meet the infrastructure needs and can effectively alleviate the financial pressure of PPP financing model for China’s infrastructure construction has provided an opportunity.Over the last decade, but the data show that China’s PPP project, there are still relatively high failure rate. Not only because the PPP project cycle is long, investment, participants wait their own characteristics, but also from the government, policies, laws and regulations and other external environment. Therefore, in order to reduce the PPP PPP mode and the failure rate of projects to promote the development of PPP projects in China better. Based on dozens of research projects of China’s failure of PPP, PPP financing models with expert advice on related fields and literature, designed for our system of risk factors for PPP projects. And the risk for the system to do a survey on the impact of China’s PPP project the key risk factors were analyzed.Analysis of key risks, the article will be further pointed out how real options theory, correctly guide the risk, the value of the project to be a true reflection. Through10summarize our PPP projects and research, the article pointed out13kinds of PPP project risks for the project may bring the option value. Points out that the risk for13kinds of real options strategies, these strategies can be exercised has not only investors, but also for the government. To findings for PPP project development in China’s better to provide some reference. To reflect the value of real options strategy, the last article of our model of a PPP project using real options analysis, pointing out that some of the risk response strategy for real options, and one of the options pricing strategy. The results show that real option strategy for the project will bring more value.