Research On Risk And Prevention Of PPP Project Asset Securitization

In the process of national urbanization construction,people's living standards have improved a lot,and the demands for infrastructure and public services are increasing.However,the construction of infrastructure and public services needs a huge amount of funds and takes a long time to build.It causes a huge burden on the national finance.Therefore,China has introduced the PPP(Private-Public Partnership)model,that is,the cooperation between government and social capital,which only accounts for 5%-10% of government investment,greatly alleviating the government's financial pressure.Although the PPP model eases the financial pressure of the government,the large scale of the project stock assets,long period,and the existence of considerable risks lead to the low enthusiasm of participating in the social capital of the PPP project.In PPP project,asset securitization is introduced as a financing mechanism.The future cash flow of PPP project is used as basic assets to support the issuance of securities to accelerate the recovery of social capital,and reduce the risk and cash flow pressure of social capital.Firstly,the related literatures of PPP and asset-backed securitization are summarized.Secondly,this paper introduces the financing theory of infrastructure construction and the related theory of PPP project asset securitization,which provides the theoretical basis for this paper.Then this paper introduces the basic assets,participants,transaction structure and credit enhancement of Huaxi Securities – Sichuan Investment PPP asset securitization,and analyses the risk of PPP project and product design of asset securitization.On PPP project,the risk of basic assets,underlying assets,local government credit and PPP project operators are analyzed.In the related risks of Asset-Backed Securitization Product design,the risk of project participants,transaction institutions and other securities related risks are analyzed.Finally,the paper summarizes the risk of PPP asset securitization,discusses the problems faced by China's PPP asset securitization,and puts forward policy recommendations for promoting the development of China's PPP asset securitization.