Research On The Capital Withdrawal Mechanism Of Quasi-profit PPP Projects

In 2013,Premier Li Keqiang pointed out at the executive meeting of the State Council that we should push the Public-private Partnership model forward and attract more private sectors to the construction and operation of the infrastructure projects in order to solve the problem of supply,quality and efficiency of the public goods at some areas.This is thought to be the start of the PPP model in China.2014 can be seen as the year of exploration,and 2015 is called as "the first year of PPP".The State Council and related ministries and commissions published a series of policy papers to vigorously promote the Public-private Partnership model which have received an enthusiastic response from all over the country.Nowadays it is difficult for the government public expenditure,bank loans and enterprise funding to meet the investment amount of mountainous PPP projects,but the enthusiasm of private sectors is not high.In the PPP projects,private sectors'entry and exit are in an equally important position.The government has been actively attracting the social capital,while ignoring the improvement of the withdrawal mechanism.At present,it is strict with the social capital to exit the projects and there are few exiting means.The absent of the withdrawal mechanism can be prohibitive even though the private sectors are interested in the profit which the projects can bring to them.A perfect withdrawal mechanism is needed to increase the capital mobility and attract more social sectors.Asset backed securitization is a newly sprouted thing like PPP mode on the market and it has strong compatibility with PPP model on practice.In 2014,China Securities Regulatory Commission published "Administrative Provisions for Asset Securitization Business of Subsidiary Corporation of Security Companies and Fund Management Companies",which integrate the real estate property and income right of the infrastructure into the basic asset of asset securitization.It is not only theoretically significant,but also valuable in practice to the research on the PPP project securitization.The introduction of asset backed securitization is not only good for the increase of capital mobility and the improvement of social capital participation degree,but also significant for the expansion of the exiting means to solve the traditional problem and make the social capital exit the PPP projects successfully.With the practice and improvement of laws and regulations of the PPP model and asset backed securitization in our country,there must be much better operation ways.This paper combines theoretical analysis and case analysis together.Through the analysis of the capital structure of the actual quasi-profit PPP projects,it stars from the capital withdrawal requirement of the project participants and combines with the analysis of the profitability and the laws and policies of PPP.Compared with the existing exiting means,this paper studies on the rationality of the PPP projects securitization to achieve a new way to withdraw from.Based on the above analysis,this paper designs the specific key factors,operation processes and so on,points out the potential problems and makes targeted recommendations.It is expected to provide reference for the PPP project capital exit by means of asset securitization in the future.The whole paper is divided into six chapters.The first chapter introduces the research background,the purpose and significance of the research,domestic and foreign present situation and a brief description of the research content and innovation.The second chapter introduces the definition and theory based on the concept.Mainly introduce the concept of the PPP model and asset backed securitization,combine with the relevant theory,to lay a theoretical foundation for the introduction of asset backed securitization for the capital withdrawal mechanism of the quasi-profit PPP projects.The third chapter is the analysis of the capital withdrawal mechanism of the quasi-profit PPP projects.Firstly,analyze the capital structure of the actual quasi-profit PPP projects,including the ownership structure and debt structure.Secondly,understand the capital withdrawal requirement of the project participants and combine with the analysis of the profitability and the laws and policies of PPP.Finally,compared with the existing exiting means,this chapter studies on the rationality of the PPP projects securitization to achieve a new way to withdraw from.The fourth chapter is the analysis of the application of asset securitization in the withdrawal mechanism of the PPP projects.This chapter designs the specific key factors,operation processes and management.The fifth chapter is targeted propose strategies for the potential problems.Based on the theoretical analysis of the previous chapters and the features of the quasi-profit PPP projects and the environment of the asset backed securitization,this chapter points out the problems including the underlying asset and the operation process and makes targeted recommendations.The sixth chapter is a summary of the full article.