Analysis On The Motivations,Influencing Factors And Financial Consequences Of The Railway Industrial Investment Fund Built By TL Company

Railway is the artery of the national economy,the key infrastructure and the major livelihood project,is the backbone and one of the main transportation modes of the comprehensive transportation system,and plays an important role in the economic and social development of our country.Speeding up railway construction,especially in the central and western regions,is a major measure to stabilize growth,adjust the structure,increase effective investment,and expand consumption.46 new railway projects have been started in 2016,with a total investment scale of 550 billion yuan.By 2025,the scale of the railway network will reach about 175000 kilometers.With the development of China’s railway industry and the financing of railways many of the current problems,the source of financing has also been gradually expanded.At present,the sources of railway funds are government investment,issuance of stocks,bonds,introduction of direct investment,investment funds,all kinds of loans(including policy bank loans,commercial bank loans,and foreign loans)and so on.Although the sources of railway investment and financing are wider than before,the sources of railway investment and financing are still dominated by government funds and loans,and other forms of financing account for a small proportion.The establishment of industrial investment fund can achieve the purpose of constructing multiple investment subjects,widening various financing channels and improving the attractiveness of railway financing,and at the same time accords with the policy of classified investment.On February 29,2016,the signing meeting of closing accounts of TL industrial investment fund with a total scale of 27.6 billion yuan was held,marking the official birth of the provincial railway industry investment fund in J Province,and truly creating a new financing mode for railway construction.It is of great significance to alleviate the difficult problem of railway construction funds and speed up the pace of railway construction.After sorting out the relevant literature,it is found that in the study of railway industrial investment funds in China,most of the researchers in our country draw lessons from and analyze the theories and experiences of foreign countries,combined with the specific characteristics and policy environment of railway investment and financing,and on the basis of the advantages and disadvantages of various industrial investment funds,such as organization form,transaction mode,investment mode and exit mode,carry on the feasibility analysis to the railway industry fund.This paper putsforward a reasonable way of railway industry investment fund,and on this basis,puts forward the assumption and hypothesis of the establishment and operation mode of railway fund.There are few documents on the motivation and influencing factors of the establishment of an investment fund for a railway industry.Therefore This paper analyzes the problems of Chinese railway enterprises in the process of setting up industrial investment funds,and the experience in solving the problems.The paper is divided into seven parts.The first part is the introduction,mainly introduces the research background and significance of the topic,comments on the existing research,on this basis,obtains the literature research method,case analysis method,comparative analysis method and so on.The second part expounds the related theories of industrial investment fund,including the concept of industrial investment fund,the operation mode and the theoretical basis of establishing industrial investment fund-principal-agent theory,capital structure theory and portfolio theory.The third part introduces the case of TL Company setting up railway industry investment fund.The fourth part analyzes the establishment of railway industry investment base by TL Company.From the general motivation of financing,there is a need to make up for the capital gap,optimize the capital structure and reduce the financing cost,while the specific motivation of TL financing is to promote the building of industrial chain,which is conducive to the active exploration of new financing models.The fifth part analyzes the influencing factors from three aspects: investors,fund management team and external financing environment.The sixth part analyzes the financial consequences of the establishment of industrial investment funds from three aspects: capital structure,solvency and asset income level.Finally,through summing up the case,we can get the establishment of iron in TL Company.The conclusion of road industry investment fund:one is to solve the financing problem of J province railway construction,the other is to promote the economic development of J province high-speed railway,the third is to improve the financing ability of TL company,and on the basis of analyzing the influencing factors of TL company setting up fund,the enlightenment of other companies to set up industrial investment fund for financing is obtained: one is to meet the needs of investors;the other is to focus on building fund management team;the third is to optimize the external financing environment.