Study On Asset Securitization Of City Projects For Basic Facilities

The report of the 17th Congress of the Communist Party of China proposed the establishment of "ecological civilization." Eco-urban infrastructure development level decides the entire national economic development, and a lot of infrastructure investment is to ensure that the national economy be sustained, steady and rapid developing. On the side of cities, to increase the intensity of urban construction and development, to improve the urban infrastructure functions and the investment environment are also the needs of competition among cities.In sewage treatment, Nanjing in 2006 plans to invest 8.2 billion yuan within three years to improve the main city's new sewage treatment system. In the period of "11th Five-Year Plan", over 150 billion yuan is to invest for urban roads, bridges, rail transportation, highway, channel of the river, the construction of sewage treatment facilities. But it is very difficult to meet the needs of so many short-term financing of the construction funds depending only on financial expenses, the issuance of bonds and other conventional means of financing. July 2006, domestic municipal facilities asset securitization, "the first single" - the "Nanjing Urban Construction of sewage treatment fees capital gains certificate" in the Shenzhen Stock Exchange listing in the next four years in Nanjing sewage charges based on the beneficial assets, Income certificate issued 721 million yuan, the yield of 3.9-4.3 percent, achieved great success. This article first studies on asset securitization's basic principles, processes of transport and implementation both at home and abroad; second the need and feasibility of it in China's urban infrastructure construction; and in light of reality discusses the operating mechanism and the existing problems.Finally it uses asset securitization's basic theory and principles of urban construction, gives Nanjing a detailed analysis of Nanjing sewage treatment asset securitization project successful implementation. Concluded: a part fills the need of charging conditions because the steady cash flow. Under the present system in our country, urban infrastructure asset securitization should be high-quality infrastructure assets of the rights fees for the securities of the foundation assets. In China, urban infrastructure asset securitization financing is not only necessary but also feasible.