Research On The Risk Assessment And Response Of Jinglan Muhe PPP Project ABS

Asset securitization is an important measure to promote the sustainable development of PPP projects in China.Based on the important principle of "risk isolation" in the design of securitization financing structure,securitization can effectively block the connection between basic assets and original equity holders to prevent risk cross transmission.However,in practice,PPP asset securitization is difficult to achieve "buyout" isolation,and the credit risk of original stakeholders will still affect the overall risk of PPP asset securitization projects.For example,the outbreak of Huaxia happiness’ s debt crisis in 2021 led to the downgrade of four PPP asset securitization projects.The default of Huaxia Xingfu securities shows that the risk of asset securitization of PPP project has surfaced.The non payment of asset securitization products when due damages the vital interests of investors and attacks their investment enthusiasm,hinders the sustainable development of PPP project,and is not conducive to the stable operation of China’s financial market.Considering the dual perspectives of the original owner’s corporate behavior and the protection of investors’ interests,identify and analyze the risks and sources of asset securitization of PPP project.Taking the ABS of Jinglan Muhe PPP project as an example,firstly,through the analysis of the current situation of the special plan,it is found that there are some problems,such as the lag of payment collection,the poor management of the main body of credit enhancement and the non real sale of basic assets.Secondly,carry out qualitative risk identification on the basic assets,participants,transaction structure and external environment of the special plan.Then,focusing on the identified risk factors,the ABS risk assessment index system of Jinglan Muhe PPP project was constructed,and the risk factors were quantitatively evaluated by using analytic hierarchy process and questionnaire survey method.It was concluded that the overall risk level of Jinglan Muhe special plan was "medium risk",and the credit risk and transaction structure design risk of the participants were in "high risk" level,which were key risk factors and deserved special attention.Finally,based on the key risk factors of the plan,this paper puts forward risk response suggestions,such as constructing the backup manager mechanism,improving the cash flow collection mechanism,appropriately adjusting the arrangement of payment date,etc.The novelty of this paper is that it starts with the existing PPP asset securitization project with risk signs to study the key risk factors of PPP asset securitization.The research object is different from the default cases generally selected by previous scholars.On the one hand,it enriches the research results of the key risk factors of PPP Asset Securitization,and on the other hand,it puts forward useful reference for dealing with the risk of PPP asset securitization project.