Study On Financial Strategy Of China State Construction Engineering Corporation Under The Background Of PPP

With the acceleration of China’s urbanization process,the demand for infrastructure is gradually increasing,and the financial investment of the public sector cannot make up for the huge funding gap.In this context,the government’s huge financial burden can be alleviated,and risk sharing can be achieved.The PPP model that achieves a win-win situation has been rapidly applied in China and has become a very important part of social and economic development.China’s major construction companies are keen to seize this market opportunity and rush into the PPP market to share this feast.However,as a new model,PPP is different from the traditional construction mode.It has the characteristics of large capital demand and long investment recovery period,which will inevitably affect the financial status of participating PPP companies.In response,participating companies will inevitably change their financial strategies accordingly.To adapt to the characteristics of the PPP project.China State Construction Engineering Corporation,as the leading boss of China’s construction industry,actively participates in domestic and international PPP projects,and the proportion of PPP project contracts in the total contract amount continues to rise.This paper compares the changes in the share of corporate PPP projects over the five-year period with the changes in financial data by studying the relevant financial data of China State Construction Engineering Corporation.from 2014 to 2018,from its financing strategy,investment strategy,operating strategy and dividend distribution strategy.Four aspects examined the changes in the financial strategy of China State Construction Engineering Corporation.And evaluate the performance of current financial strategies from both financial and non-financial aspects.The analysis found that the financing strategy of China State Construction Engineering Corporation is mainly to optimize the financing structure,increase the proportion of equity financing,reduce short-term borrowing in debt financing,increase the amount of long-term borrowing and commercial credit financing;investment strategy is more focused on the financing of business investment.In terms of investment construction and urban comprehensive construction;in the operation strategy,enterprises have strengthened control over receivables and inventories,set relevant policies to ensure that the company’s overall risks are controllable,and comprehensively clean up and rectify PPP projects;dividend distribution strategies reduce cash dividends.The allocation of more funds to the enterprise for project investment operations.The performance analysis found that China State Construction Engineering Corporation’s financial strategy for PPP achieved good performance.EVA maintained an overall increase in five years,and the corporate performance evaluation standard value also reached a good level or above,and non-financial performance was also superior to other companies in the same period.although there are still shortcomings such as high asset-liability ratio and low inventory turnover rate,the company needs to continue to improve its financial strategy,but the overall financial strategy and financial performance are matched as a whole,based on the financial strategy of China State Construction Engineering Corporation based on PPP background.The research also brings certain reference significance to the adjustment of financial strategy when other construction enterprises in China participate in PPP projects.