Research On Asset-backed Securitization Pricing Of PPP Project

In recent years,with the continuous implementation of ABS in real estate and other fields,ABS has become a mature and effective financing method in China.It plays an effective and decisive role in solving the financing problem of enterprises,which is inseparable from the strong support and development of national and local policies.While the development of asset securitization is so fast,the development of PPP project has entered a bottleneck period.PPP projects are faced with many difficulties,among which the lack of enthusiasm of social capital investment is one of the main reasons for the stagnation of PPP projects.Therefore,it is urgent to open the access of social capital and promote the enthusiasm of social capital to enter the PPP field.Applying ABS to PPP projects is the solution for the country and the government.Therefore,ABS of PPP projects has become an important tool for the country to build a diversified exit channel for PPP projects,which is also effective in practice.In the whole process of ABS,product pricing is the central part,which directly affects the success of product issuance and whether the transfer transaction can go on smoothly.Thus,the pricing of asset-backed securities in PPP projects has become the focus of investors from all walks of life.This paper studies the factors influencing the pricing of ABS in PPP projects,combining with common bond pricing and asset securitization pricing factors,studies the determinants of asset securitization pricing,and make empirical analysis about the distribution characteristics,factors such as cash flow characteristics.This paper makes an empirical analysis based on the characteristics of PPP-ABS.Firstly,a group monotone analysis and correlation analysis were conducted on a number of single factors,such as the issuance period,issuance scale and main assets,to preliminarily judge the influence of these factors on the issuance spreads of PPP-ABS.Then,142 products of PPP asset securitization products from January 2014 to June 2018 were selected for multiple regression analysis.The regression results show that the pricing spread is negatively correlated with the reference rate,the quantitative score of credit rating,the issuance scale and assets,which is consistent with the hypothesis of the above single-factor analysis.Among them,the most influential factor on pricing is credit rating,followed by reference interest rate,the third is the issue size,and finally the assets.Finally,this paper combines theory with practice,selects HUAXI securities-Sichuan Provincial Investment Group PPP-ABS project to further explain the empirical analysis results,and puts forward suggestions to improve the asset securitization pricing of PPP project in China.The innovation of this article is mainly reflected in three aspects: The first one is the innovation of research content.The PPP asset securitization research mainly focused on qualitative research and use of pricing method for the face value of the ABS product.The research about the PPP asset securitization pricing factors is less.In addition,there are great differences in the selection of specific indicators in related studies.However,as a new thing,the pricing of PPP asset securitization products has its own particularity.Therefore,there is no consensus on the research on its pricing influencing factors at present,which needs to be further studied.This article fully considers the various influence factors of the PPP project assets securitization pricing,relative to the currently existing PPP-ABS pricing research,this article not only proves the existing pricing factors,also found new factors that influence the PPP-ABS product spreads.It provides ideas for the PPP asset securitization product pricing in China,and provides decision-making basis for the product designer,investors and other parties.The second is the innovation of research methods.In the research field of PPP project asset securitization pricing factors,this paper combines theory with practice for the first time,focuses on empirical analysis,supplemented by case analysis,and the results of empirical analysis are more clearly explained and applied.Thirdly,the innovation of research data.This paper selected 1235 pieces of data from 142 products of all PPP asset securitization projects from 2014 to the middle of 2018,which were the most complete data samples and the latest data in this field.