A Case Study On Cash Flow Risk Management Of Basic Assets Of The Initiative

The traditional financing mode is difficult to meet the fund demand of PPP projects because of the large demand and long recovery period of the PPP project in the sewage treatment field.Asset securitization,based on the cash flow income of underlying assets,is a new mode of financing for PPP projects through structured design and issuance of securities.This way can not only improve the liquidity of enterprises,but also introduce the advanced technology and management experience of social capital.But in practice,the PPP project due to underlying assets measurement deviation,government credit risk,choice of enterprise bankruptcy and the reasons of force majeure factors,will affect the underlying asset cash flow back in time.Therefore,the research on the risk management of cash flow of the basic assets of the project is conducive to controlling the risk in advance and maintaining the stability of financial market,which has certain practical significance for the sustainable development of China’s economy.This paper studies the potential risks of cash flow of basic assets and puts forward corresponding countermeasures.The main contents include: firstly,the domestic and foreign literatures are sorted out according to the methods of asset securitization,risk assessment and the risk management of basic asset cash flow.Secondly,it analyzes the main participants of the initiative,the calculation of the cash flow of basic assets and the main risk factors;Then,the risk factors related to the cash flow of the underlying assets are identified and the importance of risk is evaluated by the analytic hierarchy process.Finally,countermeasures are put forward to identify the cash flow risk of the underlying assets.In pioneering stake foundation assets on the basis of risk identification and analysis of cash flow,put forward should carefully choose the fundamental asset securitization,strengthening the construction of government credit to ensure fiscal income,perfecting social capital party selection process,the selection of strength of the company as a social capital party strengthen basic assets such as cash flow risk management countermeasures and Suggestions of the sewage treatment industry for the future asset securitization,the PPP projects for the underlying assets to prevent the risk of cash flow.