Analysis On Joint Venture Railwav Profit In China And The Financing Risk Prevention

The railway industry embraces the virtue of its transport capacity, high safety performance, low energy consumption, environmental protection, and all-weather transportation advantages. For the development of world economy and social development railway industry plays an important role. In the past ten years, with the rapid development of China’s economy and society, the whole society has a growing demand for railway transport. The railway transport capacity, efficiency, service and technical level have also been put forward to higher requirements. At present, most of our railways are in joint venture mode, such as the Beijing-Shanghai high-speed railway and chengmianle high-speed railway. Joint-venture railway is an important step on the of Railway Administration dependent. It can be said that the joint venture railway is the foundation of railway development. According to the "11.5" period data, China railway investment amounted to156million RMB. according to the national railway development plan, during "12.5" period,there will be30000km of new railway lines.2800billion funds are expected mainly used for high-speed railway passenger dedicated line, the development of intercity passenger rail transit construction of existing railway reconstruction. Therefore, it also provides a huge market space for the bank credit business.The construction of railway network is a major infrastructure project of national economic and social development. Since it is a large investment in railway capital, most of them relies on commercial banks. The Ministry of Railways and the local government increase its investment Minority of investment has been and will be put into the joint venture railway construction project. Since large-scale railway construction is inseparable from the demand of a huge amount of investment, the joint venture railway project loans and the proportion of total continued to be pushed up, and credit conditions continue to be relax. Credit risk of Joint venture railway loan bank credit risk must be paid attention to. This paper will focus on earnings in recent years of typical joint venture railway project, and to reveal the main factors of bank loan debt principal and interest coverage. Through the analysis and measurement of the joint venture railway credit risk, the paper will finally give supportive recommendations for financing joint venture railway.This paper integrates the related theories and practices, analyses on joint venture railway profit index and finally measures bank loan debt coverage ratio. Through the analysis, the joint venture railway project profitability is a necessary factor to determine the level of bank credit risk. In addition, through the analysis of the bank credit risk on the project joint venture railway, two recommendations are given.The innovation of this paper lies in:first, the use of index calculation method to analyze the profitability indicators of joint venture railways in China, thus the impact of bank credit risk factors; second, the use of risk classification analysis method is applied to estimate credit risk of different types of joint-venture railway. According to the adoption to prevent credit risk of railway program,the suggestions on how to manage joint-venture railway credit and bank credit advice are given.