The Asset-Backed Securities Financing Research Of The Infrustracture

Based on the development strategy of city C, the urbanisation rate of C will arrived at 65%. It will bring old city transformation, construction of new town, housing removal and resettlement. This situation would not only provide opportunities to infrastructure construction but also challenge corresponding financing modes. As stated in 2014’The administrative regulations on asset-backed securities business of securities companies’, five industries including infrastructure construction industry would be given priority by China Securities Regulatory Commission (CSRC), which offers policy support for asset-backed securities business in infrastructure construction industry.The paper starts from the core idea and three basic principles of asset-backed securities, and summarises accounting treatments, tax treatments, information disclosure and focuses on different kinds of asset. It provides the theoretical basis for asset-backed securities business in infrastructure construction industry.Then the author goes into classification and characteristics of infrastructure construction, which offers the fusion to application of asset-backed securities business. The author also compares pros and cons of bank loans, bond financing, off-balance-sheet financing and government expenditures support, and states the importance of asset-backed securities business in infrastructure construction industry by analysing figures of 2014 and 2015.Asset-backed securities business in infrastructure construction industry is both feasible and necessary as mentioned above. The research object is public rental housing financing offered by housing security centre of city C. The corresponding scheme would thus be to utilise franchise right, to restructure basic assets and to use SPV structure. The scheme explores advantages of housing security centre of city C, while eliminate obstacles of government-affiliated institution in financing. There is no precedent until submission of the paper, which makes it a brand-new idea and an instructive scheme.