A Case Study Of Asset Securitization In Public-Private Partnership Project Of The Sewage Treatment System About Beijing Capital Group Company Limited

Since the reform and opening up,China’s rapid economic development has resulted in ecological damage and environmental pollution.The country advocates green and sustainable development model to improve environmental problems,and promoted the concept of green finance in the financial market.The environmental business is growing quickly in the green field and government financial support is difficult to meet the demand of funds.Environmental companies need to find new financing channels to help them win the battle against pollution.Asset securitization in Public-Private Partnership project makes financing environment enterprises get more money and improve the environment.It also solves the problem of social capital investment payback period and the poor liquidity problems.A lot of social capital is more willing to participate in.This financing model can promote environmental protection in the field of the PPP project long-term stable operation.In this paper,I will use literature research,comparative analysis,the combination of theory and policy and other research methods to asset securitization in PPP project of the sewage treatment system about Beijing capital group company limited.introducing the issue of project background,the financial status of the parent company and four subsidiaries.project model and project process are the next step.in turn,I will do targeted analysis of the project about cash flow.what is more,I will compare the environmental protection PPP asset securitization with the green credit asset securitization.There are some similarities and differences of two green financing modes.The similarities are that they are both belong to the category of green asset securitization and have unique advantages of financing in the field of green industry development.But the green financial market is not mature and the relevant laws are not perfect.Differences include the type of underlying asset and issuance,matching degree of project cycle and asset securitization term,the involvement of local government and risk of compliance,etc.The uniqueness of the PPP projects can be summarized.this article points out the insufficiencies of this financing model in the end,combining with the analysis of Suggestions from many levels,enterprises must strengthen the management of cash flow and take more measures to improve the matching degree of project cycle and asset securitization cycle;In terms of market,we should improve the green financial market system and enhance the liquidity of asset securitization market.The government should take multiple measures to reduce the credit risk by strengthening the assessment of financial bearing capacity and strengthening the construction of credit system.All these improvements cannot be separated from the support of laws and regulations.We should not only improve the top-level design in the field of green finance,but also strengthen the construction of PPP laws and regulations.Presented by case,readers will have a deeper understanding of PPP asset securitization.This case provides new ideas for financing in the field of green industry in China and promotes the development of green finance.