Research Infrastructure Asset Securitization Financing Scheme

In2013, the new "urbanization" became the country’s economic priorities, all levels of local government financing platform undertook construction responsibility of infrastructure in urbanization process. Since the traditional Credit financing have been unable to meet the huge funding need of China’s infrastructure construction, it is an urgent and essential task to develop market-based financing channels which can guarantee the sustainable development of infrastructure investment. In March2013, the china securities regulatory commission formally issued "regulations on asset securitization business of securities companies", providing an opportunity for finance innovation of Infrastructure Corporation.Based on basic theory of asset securitization, I first introduce its core principle, operation mechanism and the transaction structure. And then I focus on our country enterprise asset securitization practice mode, with emphasis on the background of Specific Asset Management Plan, the SPT mode in china.From the perspective of financing rates and time limit, use Asset Pricing Model to compare three market-based financing ways-the collection trust, urban construction investment bonds and asset securitization. Studies have found that asset securitization have great financial advantage, with the beneficial of quality assets isolated from the enterprise credit rating, financing cost reduced, and the payback period of project funding covered.Based on the necessity and practical limitations of our infrastructure enterprises’asset-backed securitization, the author introduces a real case-he A Construction Investment Company of Pukou District in Nanjing. The writer creatively designs an project, including a single trust fund and SAMP, which covers two periods of construction and post-construction respectively, and show the trade process of whole project in detail, and analyzes the finance effects for the company, investors and the commercial bank "C", who is the manager of the whole finance project. We find that combining the SAMP with other financing products not only provides infrastructure enterprises a low-cost financing method, but also brings alternative investment products for investors and improves their rate of return on investment. What’s more, it helps the bank innovate new products, disperse finance risks, and achieve revenue growth. As this case has practical effect, it is a great significance of local exploration of infrastructure construction enterprises’ asset-backed securitization in China.