Research On The Mode Optimization Of Financial Leasing Companies Participating In Local Government's PPP Projects

To meet the growing demand of urban residents for living conditions.In the past decade,shanty town renovation project was being continuously carried out,the need for funds was expanding too.Under the background that the ministry of finance has issued a series of articles regulating local government financing,and strictly control the size of government debt,the financing of local government infrastructure construction has been severely restricted,and the fund of the shantytown renovation has been exhausted,and new investment and financing modes are urgently needed.It has been proved that the Public-Private Partnership(PPP)mode has advantages in the investment and financing of local infrastructure projects,and it is supported by policy.Finance leasing companies have been booming in China in recent years.Its main business has the feature of financing and assets leasing,it has the professional ability of providing financial services,implementing fixed asset investment and designing financing plan.Therefore,based on how the financing lease companies select the optimal path,participating in local government shantytown renovation project through the PPP mode as the research subject,in order to provide an idea for solving shanty town renovation's financing dilemma.This paper tries to discuss the viewpoints in two main ways through two parts.First,the theory study.The combing,summarizing and the conclusion of the existing theories on the financing of renovation projects in shanty towns,focuses on the deficiency of traditional financing mode and its contradiction with the current policy.At the same time,this paper analyzes the significance of introducing PPP mode into such projects,and expounds the role of introducing PPP mode to improve the financing of shanty reform.Make a brief analysis of the participation of financial leasing companies in shantytown renovation related PPP projects.From a practical point of view,focus on the process design,mode selection,risk control and other key nodes involved in project investment and operation.Indicates that the finance leasing company has the ability to participate in the PPP project,and to solve practical problems.Second is the case studies.This article analyzes two instances of the traditional mode and the optimal mode for the financial leasing companies to participate in PPP projects related to shantytown renovation and carries on the analysis and comparison between these two cases.This paper clarified the the traditional financing leasing companies have the necessary and potential to optimize the mode of the PPP project,and try to explore the ways of further optimization.Finally,it can get these conclusions:1.Financial leasing companies can increase their own rate of return through the form of profit distribution of the contractor;2.The finance leasing company can also obtain additional income through the financing lease of the assets in the project to meet the demand for yield;3.The participation of financial leasing companies in PPP projects related to shanty town renovation can optimize the distribution of the interests of the parties of the PPP project mode,reduce social capital dependence on government pay,decrease local government financial pressure of the PPP project.The author has been working in the finance leasing more than five years.Once,he was personally involved in shanty town renovation PPP projects.Thus he has the successful experience in operating such projects.The author has the access to the first hand materials for researching about finance leasing companies' participation in PPP projects related to shanty town renovation.This is an advantage that other researchers don't have.This paper focus on the combination of the PPP mode and financing lease company,to explore how to optimize the mode of combination of both,resolve the financing difficulties of shanty town transforming program,designed to solve the difficulties encountered in the practice,which has a practical significance.And the case that the core part of this article cited were all living examples.The mode and data included was close to the practice of the current market.The analysis based on those data can carry out a highly feasible conclusion.which is conducive to the promotion of the better mode of the financing leasing companies' participation in the PPP projects of local government related to shantytown renovation.