| The environmental protection industry has a good opportunity to develop itself. The "Twelfth Five-Year Plan" of the county focus on the development of the environmental protection industry. As a public welfare industry, the development of the environmental protection industry conforms to the trend of the times. In addition, in the current economic situation, to encourage the development of the environmental industry can effectively expand the employment, stimulate the economic, and to prevent the risk of economic downturn. Now times, the environmental protection industry of our country mainly locate in the eastern region where the economic developed very well. The eastern region rely on the location advantages to financing for the environmental protections industry, but the environmental protection industry of the vast western region is limited to insufficient capital investment and have a lot of difficult to obtain the breakthrough.The development of environmental protection industry needs a large number of early infrastructure investments. The benefits of the project will be obtained long ago after the completion of the project, but the return will be stable. As well as, the return could be more and more as a result of the stringent environmental policies. Therefore the environmental protection industry should participate in the capital markets actively, to expand the sources of funding, promote their development. Domestic investment and financing contradiction is very sharp. On the one hand, the development of the environmental protection industry requires the injection of lots of money. The traditional model which relies on government investment solely cannot solve the problem. Especially in the western region in which the government can’t pay for the project, it has a large market. On the other hand, domestic hot money affects the stock market, property markets, and even the art market has suffered from the containment of hot money. It illustrates that Investment channels are so less to invest.The difficulties between financing in environmental protection industry and investment in capital markets show the deep-rooted problems of China’s capital market financing channels. The patency of the capital market investment and financing channels is a necessary precondition for their healthy development. Asset back securitization (ABS) can make social idle funds together to invest in areas of urgent need. Through a rigorous credit rating, the project is able to generate stable earnings, increase the value of assets for investors. The same time, asset back securitization can open up a new investment channels for capital markets to avoid over-speculation of hot money in the case of a single investment channels. This paper aims to analyze the match between environmental protection industry in the west region and ABS financing mode. Research the environmental protection industry development path, the western region with its own characteristics, financing model construction, economic theory, extend the extension and the historical data showing with data analysis, model derivation and contrast the financing model of the environmental protection industry in the western region. Because of the broad prospects for development of the environmental protection industry, solid customer base, excellent earnings expectations, the author believes that the subject of ABS financing is feasible. Introducing the ABS financing mode to the environmental protection industry is a major innovation, but it still needs to overcome some difficult, such as policy support, improve the legal, market maturity and other aspects of the problems. The author believes that with the domestic capital market matures, these issues will be resolved. The author carried out a detailed design on ABS financing for environmental protection industry in the article. At the same time, it is also an innovation and development of traditional ABS financing mode. |
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