Case Study On Asset Securitization Of CFLD's PPP Project

In recent years,with China's economy into a "new era",the gap of government between revenue and expenditure continued to expand.Because of the implementation of the new budget law,the financing of local governments in the investment and financing platform has been limited,and then the governments turn to seek social capital to participate in the construction of various types of public utilities,thus promoting the development of PPP project.The Gu'an model of CFLD(China Fortune Land Development,for short:CFLD)has been selected into the PPP demonstration project by National Development and Reform Commission because of its creative experience.The large number of PPP projects have resulted in a significant increase in CFLD business income and a rapid increase in value,but it also requires a more robust cash flow to sustain the corporate's business.This paper analyzes the motivations,the experiences and the risks of the asset securitization of Gu'an urbanized project,and provides the important theoretical value and reference for the social capital of PPP projects in China.This paper adopts the method of literature research and case study to verify the PPP project and asset securitization at first.It is worthy of follow-up enterprise to follow the example,and it has theoretical and practical significance.Secondly,analyzing the operation process,the core design ideas and other key aspects of CFLD PPP asset securitization in-depth.On this basis,combined with its current environment and financing costs,the necessity of its implementation of asset securitization was verified.And then,enumerate the possible risks and mitigation measures and,point out the problems that exist in the securitization.Finally,the characteristics of asset securitization of PPP project are analyzed in detail.And put forward some specific advice:to improve the basic assets of the industry standards,regularly verify the operation of PPP projects and improve the corresponding laws and regulations.Based on the analysis of the CFLD's PPP Project,which is one of the first batch of PPP securitization projects in China,this paper argues that the PPP project combined with asset securitization can alleviate the shortcomings of PPP project investment and the long payback period to a certain extent.At the same time,it can establish the appropriate financial financing mechanism,provide new financing channels,revitalize the stock of assets,making the social capital to rationally accept PPP project.It has important enlightenment and reference significance.