Risk Analysis Of Accounts Receivable Securitization Of China Construction Third Bureau

For more than 30 years,the most important and revolutionary innovation in the financial field is asset securitization.The operation principle of this financial instrument is that the sponsor measures the financing target,evaluates and reorganizes the future recovery of cash flow,builds an asset pool,improves its credit through rating,and finally sells securities to the market,so as to achieve the purpose of financing.As the basic industry in China,the income of construction enterprises lags behind.This is mainly related to the accounting revenue recognition and actual payment of construction enterprises.In China,construction enterprises basically recognize the income and expenses according to the percentage of completion,but the actual income does have another agreement.This kind of business model of spending first and collecting money later leads to a large amount of advance funds in the early stage of engineering construction companies,which has a great demand for funds,and collecting money later also forms a large number of accounts receivable.Therefore,we need to solve the problem of cash flow through a variety of financing methods.Taking the Third Bureau of China Construction as an example,this paper studies the possible risks,risk factors,impact and harm degree of the sponsors,SPV and other participants in the process of securities issuance.Based on the analysis of the existing research at home and abroad,this paper lists specific cases,and comprehensively discusses the participants,basic assets,and transaction process of the asset securitization of China Construction Third Engineering Bureau,and explains the market performance of the issued securities.Then,the risks related to basic assets,asset-backed securities,special plan management,policy and law and other risks in the process of accounts receivable asset securitization of China Construction Third Engineering Bureau are analyzed.Finally,the paper puts forward specific prevention suggestions for the above risks.The asset securitization financing mode of accounts receivable of construction enterprises is widely used and develops rapidly.China Construction Third Engineering Bureau is in the top low position in construction enterprises with large scale and large business volume.Therefore,It is significant to prevent the risk of the securitization of accounts receivable in construction enterprises in China...