A Research On ABS Financing Applied To Infrastructure Project

China is undergoing a stage of high-speed urbanization and Large-scale investment in infrastructure has become an irreversible trend with the introduction of “along the way” strategy. Construction of infrastructure project needs a lot of money and benefits slowly in return in a long period. It is obviously unsustainable to rely on government only, while the existing financing model has many disadvantages. As it was always the case before, lack of money slows down the construction of infrastructure. Asset-securitization, as a rise of innovative financing tool, provides us a new solution. At present, research on asset-securitization is more concerned about securitization of credit assets owned by financial institutions. This article is a research about how to guide private capital to construction of infrastructure with help of ABS.Firstly, this article makes a brief introduction of China’s infrastructure financing history and makes an objective assessment of the current local government-led infrastructure financing model to point out the limitations. Then it shows pros and cons of each financing model by comparing and summarizing, which also proves necessity of ABS. As it shows, ABS model can be a solution to financing problems in infrastructure project, as well as a good supplement to existing ones. The article also focuses on the practical problems encountered in the operation and corresponding countermeasures, especially Under China’s current economic and legal environment. As a result, It builds a complete infrastructure asset securitization system by choose a rational form of SPV, selecting participants, designing a balanced transactions. Finally, it makes relevant policy recommendations for decision-making which provides reference and basis.Under the background of vigorously promoting the asset securitization in our country, this paper concerning ABS financing mode of infrastructure projects has important significance.