Research On Asset Securitization Model Of PPP Project

In recent years,as China's economy has entered the “new normal” development model,the funding gap of government departments has continued to increase,and the introduction of the new budget law has also restricted the financing of local governments on investment and financing platforms,making government departments seek social capital.Participation in the construction of public infrastructure projects,coupled with strong support from the central government policy,has further promoted the development of China's PPP model.However,on the other hand,China's PPP model is still in the exploratory stage.At present,there are problems such as the imperfect PPP related legal system,the blindness of the government's blind investment,the non-standard operation in the actual operation process,the coexistence of private capital entry and exit resistance,and the project approval process.The problem of poor financing capacity and other issues,and due to the long investment recovery period of PPP projects make the development of China's PPP model into a predicament.Therefore,the introduction of the PPP asset securitization financing model will be necessary.By means of asset securitization,it can provide an exit path for social capital,solve the problem of poor project financing capacity,and solve the problem of corporate capital occupation.To a certain extent,ease the current PPP model faced difficulties.At the same time,the combination of the respective characteristics of PPP and asset securitization and the support of government policies have also provided feasibility for asset securitization of PPP projects.The case selected in this article was “CITIC Securities-BEIJING CAPITAL CO.,LTD Special-purpose Plan for Charges and Gains in Assets Support for PPP Projects for Sewage Disposal”.In December 2016,the National Development and Reform Commission and the China Securities Regulatory Commission jointly issued the “Promotion of Governmental and Social Capital Cooperation in the Field of Traditional Infrastructure”.The first batch of PPP asset securitization projects officially launched after the PPP notification on project asset securitization was the first environmental protection PPP asset securitization project.Therefore,the study of this typical case can give some experience for the operation of asset securitization of public infrastructure PPP project in our country.This article combines the research methods of literature research,theoretical analysis and policy analysis,theoretical analysis and case analysis.Under the support of public product theory,information asymmetry theory and project financing risk management theory,the first is PPP and asset security respectively.The company made an introduction and analyzed the problems existing in China's PPP model,which led to the necessity and feasibility of asset securitization of PPP projects.Secondly,after reading the relevant announcements made by BEIJING CAPITAL CO.,LTD on the Shanghai Stock Exchange,the case was comprehensively analyzed.Introduction,including case policy background,corporate background and PPP project background,basic asset analysis,introduction of transaction structure,design of securitized product structure,and design of credit enhancement;once again conducted an in-depth analysis of the case,and concluded that its assets The motivation of securitization is determined by its financial characteristics and business model.After introducing the future cash flow forecasts,the profitability of original equity holders,and the creation of its own core competitiveness and policy constraints,it concludes that its securitization can run successfully.Causes of simultaneous securitization effects and benefits and potential wind Analysis and prevention aspects of the analysis;Finally,the general condition of public infrastructure PPP projects in order to successfully operate in this mode,as well as from business operations and operational level,the level of system construction and improvement proposals to promote the model.