Research On Asset Securitization Of Chinese Power Plants

Asset Securitization is one of structure-financing patterns. It ensures finance successful by rigorous and effective transaction-structure. This financing technique originates from t he H ousing M ortgage Loan S ecuritization i n America i n 1 970s, and afterwards it is applied to the non-mortgage creditor's assets extensively in addition to mortgage creditor's rights, and develops vigorously at Euro-American market in 1980s. From 1990s Asset Securitization begins to appear at Asian market, especially after financial crisis in Southeast Asia, it develops quickly in some Asian countries.Owing to huge investment scale on electric projects in our country, long time that fund is occupied; it is not realistic to build electric projects only by financial appropriation or enterprises self-fund. If we raise money to build projects completely by loans from internal and external banks, which must cause power plant's high debt proportion and increase power plant's burden, and that may cause bank's assets become bad assets. Therefore the paper researches Asset Securitization of power plant in attempt to find a new financing channel.First, the paper discusses Asset Securitization financing structure can reduce information cost and supervision cost to realize financing at low cost from economic angle, and then analyses restrained conditions of establishing internal Asset Securitization market and feasibility of power plants Asset-Securitization financing and then the paper comes up with frame-structured model and operation procedure of internal power plants Asset Securitization, namely raising money for power plants by establishing Securitization Center and issuing Asset-backed Securities, and expounds each technical links. Last, the paper carries out a trial explore into the opportunities and problems that may exist during practicing power plants Asset-Securitization in Shan'xiProvince, and also makes several suggestions from the aspects of policy, legislation and system, and then makes a conclusion that Asset securitization should choose a way developing in practice.