Research On Practice Of PPP Asset Securitization

PPP mode is a mode that the government and the social capital jointly carry out the infrastructure construction,which has greatly promoted the rapid development of public utilities in China.However,due to the early PPP project requires a large capital investment and the recovery time of the funds is relatively long,the ability of PPP projects to attract social capital is limited.For this purpose,in order to stimulate the development of PPP mode in China and urge the enterprises to carry out PPP projects in advance to recover the related inputs of PPP project construction,our government has promulgated relevant policies and regulations to encourage the development of PPP asset securitization.In China,the PPP asset securitization business was formally developed in 2017.However,taking into account of the PPP asset securitization in China for the initial stage,at the end of 2017,the number of the duration PPP asset securitization products is only 10 in China.The development experience of China's PPP asset securitization products is also inadequate.Therefore,to further promote the development of China's PPP asset securitization market,this paper attempts to take Qingchun Road Tunnel PPP asset securitization project as an example to make a systematic analysis of PPP asset securitization business.Specifically,this paper is on the basis of the relevant literature and systematic description of China's PPP asset securitization market,and then writes the key part of this paper,namely taking Qingchun Road Tunnel PPP asset securitization project as an example,make an analysis of the establishment of effect,the comparison with other available financing ways,risk control,enlightenment and the existing problems.Then,combined with the main practices and related experience of PPP asset securitization abroad,pertinent suggestions are put forward,so as to further improve the PPP asset securitization business in China.Through the research,this paper found that there is a big difference between PPP asset securitization products and other asset securitization products based on assets,duration and expected release rate.And taking the PPP project that can revitalize the stock of assets,expand the PPP project financing channels,reduce financing cost,improve PPP project operation capacity into consideration,it is necessary for China to carry out PPP asset securitization.And from the analysis of Qingchun Road Tunnel PPP asset securitization case,we can see that the PPP asset securitization has a certain economic effect on Hangzhou municipal government and Insigma.However,there are still some problems such as poor liquidity,lack of basic assets,mismatch of asset maturity and asset securitization,inability to achieve real bankruptcy isolation,poor transfer of income rights and poor compliance.Combined with the practice of foreign WBS,PPP+REITs,it is necessary to improve the trading mechanism and operation process,gradually enrich PPP asset securitization products,focus on solving the maturity mismatch problem,improve the innovation mode,bankruptcy isolation policy system and related facilities in the future.