Research On The Pricing Mechanism Of Asset Securitization Of PPP Project In China

PPP project asset securitization is an innovative financing method,which can activate the huge stock assets of the project company and improve liquidity.In essence,it helps to improve the efficiency of resource allocation and stimulate the vitality of social capital.In the long run,the scale of PPP project asset securitization has great development potential.PPP project asset securitization has complex transaction structure,and pricing is the key issue affecting the circulation of asset-backed securities.Because the market of PPP project asset securitization in China is at the initial level,the issuing market is small and the liquidity of the trading market is poor,there is no reliable pricing foundation in the primary market.Effective pricing mechanism can induct the standardization process of PPP project asset securitization in China,so it is of great significance to study the pricing of PPP project asset securitization.The author teases out the research results and experience of PPP project asset securitization and pricing at home and abroad by literature research method,and analyses the current situation of PPP project asset securitization and pricing in China.On the basis of the principles of asset securitization,asset pricing theory and term structure theory of interest rate as the main theoretical guidance,this paper uses empirical research method to study.By comparing several traditional pricing models,such as Static Cash Flow Yield,Static Spread and risk-free arbitrage pricing method,this paper argues that Option-Adjusted Spread method based on interest rate binary tree model is a more reasonable method.This paper takes the asset securitization product of Huaxia Happy Gu’an Jiutong PPP project as an example,uses MATLAB software to obtain the CIR single factor model interest rate volatility,and uses the interest rate binary tree model to imitate the interest rate path and then price the project.The error of 3% between the empirical test results and the inquiry results of the project shows that the model has good theoretical reference value.From the point of view of the connotation of pricing model,this paper argues that PPP project asset securitization has cash flow stability risk,inflation risk,fluctuation risk of benchmark interest rate,and original stakeholder’s continuing operation risk,which need to be prevented.