Research On CRRC Investment Benefit And Risk In Jakarta-Bandung High-speed Railway Project Under "The Belt And Road" Initiative

The proposal of the "the Belt and Road" initiative will not only increase the foreign investment of Chinese enterprises,but also help the construction of infrastructure in developing countries along the route.However,the current world economic instability factors are increasing,and the environment of foreign countries is different from that of China,which makes Chinese enterprises face many challenges when investing abroad.Therefore,the purpose of this paper is through the case of CRRC investment the Jakarta-Bandung High-speed Railway,analyzing the investment benefits and risk to provide a reference for the future investment of Chinese enterprises.This paper analyzes the investment benefits and risks of CRRC to the Jakarta-Bandung High-speed Railway.Firstly,it introduces the theory of investment benefit analysis,the theory of investment environment analysis,the theory of financial analysis and the related concepts.Then,this paper discusses the case,starting from the background of“the Belt and Road",introduces the proposal,development and influence of "the Belt and Road".At the same time,this paper introduces the situation of CRRC and Jakarta-Bandung High-speed Railway project.The investment background of CRRC in Jakarta-Bandung High-speed Railway project is analyzed in detail by using the investment environment analysis theory,and the investment situation is also introduced.Then,using the financial analysis theory,the indicators of NPV,operating net profit rate and return on net assets of the Jakarta-Bandung High-speed Railway project were obtained,so we can determined that the economic benefits of the investment of the Jakarta-Bandung High-speed Railway by CRRC.Finally,this paper analyzes the investment risks faced by CRRC in the Jakarta-Bandung High-speed Railway and puts forward suggestions on how to reduce investment risks and also gives some advices on how to optimize the investment of other projects.The main research results of this paper are as follows:First,this paper analyzes and predicts the future passenger flow,revenue and cost of the Jakarta-Bandung High-speed Railway project.Using NPV and profitability are used to illustrate the investment benefit that the Jakarta-Bandung High-speed Railway can bring to CRRC.And the analysis shows that it brings huge social benefits to CRRC.Second,through the sensitivity analysis of NPV,the two factors of passenger flow and cost have great influence on the NPV of the Jakarta-Bandung High-speed Railway project.The slight change of passenger flow and cost will make the NPV of the project negative.Third,this paper analyzes CRRC's investment risks in the Jakarta-Bandung High-speed Railway project,including investment patterns risk,political risk,financial risk and operational risk.Enterprises can learn from the Jakarta-Bandung High-speed Railway project,which can help enterprises find ways to optimize investment and reduce risk.