Trust Equity Invest PPP And Its Risk Prevention

Along with the rising demand in the field of infrastructure construction,the Chinese government is facing a bigger fiscal pressures,thus there is an urgent need of financial support from social capital.Since 2014,PPP mode has been developed and promoted strongly because of the limitation of local government financing platform.Financial institution especially Trust pays increasing attention for the PPP projects,as important social capital in PPP mode.Basic industry has always been an important investment field of trust companies,besides that,Trust also has a good cooperation foundation with government.Under the background of traditional government-trust cooperation is blocked,be a part of the PPP project is a great opportunity for trust company.However,due to the lack of necessary theory and practice,most of the trust companies take the wait-and-see attitude about participating PPP and the advantages of trust is not fully displayed.Based on the background,theoretical study on the new mode of government-trust cooperation is necessary.The research purpose of this paper is to provide theoretical basis and guidance for trust companies to participate in PPP project.Based on the summary and the analysis about related theories,this paper discusses the about the feasibility of trust participating PPP both in theoretically and practically.For analyzing the feasible models of trust companies participating PPP project,paper analysis the existing practice deeply and rise practice to the theory level,including the operation logic relationship,cash flow and risk prevention.Research methods this paper involves are case study method,theoretical study method and both quantitative and qualitative research methods in analyzing the target model.The main innovation points of this paper is:(1)Rising existing practice of financing innovation to the theory level,and analyze cash flow of each participant through the operation logic diagram;(2)Using Quantitative analysis method to analyze the target case,verify the theory analysis conclusion by financial data of case.