Study On Asset Securitization Pricing Via PPP Model

With the acceleration of urbanization in China,the investment in social and public infrastructure has gradually expanded,which has brought tremendous pressure on the government's financial expenditure to a large extent.At the same time,in the subsequent laws,the new budget law further restricts the financing channels of local governments,forcing local governments to turn to cooperate with social capital to participate in the construction of public utilities,thus promoting the development of PPP project financing mode.However,due to the large amount of investment,long payback period and high risk of PPP mode,many social capital are reluctant to participate in it.Therefore,in December 2016,the State promulgated the Notice on Promoting the Asset Securitization of Government and Social Capital Cooperation Projects in the Field of Traditional Infrastructure,which greatly promoted the process of asset securitization of PPP projects in China,largely remedied the shortcomings of PPP mode financing,and opened up a new direction for the financing of PPP projects in China.Based on the theory of asset securitization and the pricing principle of asset securitization,this paper analyses the feasibility of China's PPP model for asset securitization.This paper summarizes and compares the characteristics of three commonly used pricing models at home and abroad.Based on the characteristics of infrastructure PPP projects in China,the asset securitization pricing model is constructed.T Through empirical analysis,three models are used to price the case.According to the pricing results,the three models are compared and analyzed,and the pricing model suitable for PPP asset securitization is revealed.This paper chooses the new water source PPP asset support project as the case study object.This case is the first PPP asset securitization project in China.At the same time,the product based on the sewage treatment fee income right accounts for the largest proportion in the market-issued PPP asset securitization projects,so it has representative and practical significance.The empirical results show that:firstly,the cash flow of PPP project is strongly dependent on the path,and Monte Carlo model can simulate the cash flow of PPP project in the next few years through computer simulation,which provides a reference value for social enterprises to carry out the pricing of PPP asset securitization business;Secondly,due to the long period of PPP project and the uncertainty of future risk,in order to ensure the successful issuance of securitized products,it is necessary to design reasonable credit enhancement measures.Thirdly,as the first BOT-mode PPP project asset securitization product in China,the new water source PPP asset support project has great reference significance in the selection of transaction structure,credit enhancement measures and pricing methods.It can provide reliable guidance experience and strong reference for the further development of PPP asset securitization,and has great potential application value.Combining with the research of this paper,on the basis of protecting the interests of investors and maintaining the healthy development of the market,this paper presents four recommendation:Improve the legal system of PPP asset securitization;Improve the issuance pricing system;make full use of the existing PPP asset trading center platform,price monitoring mechanism;and rationally adjust the price level of products.