The Case Analysis On Risk Management Of Citic Trust's Participation In Tangshan EXPO PPP Project

The trust company has always been very concerned about the field of infrastructure construction and regards it as its own key investment target.In the past few years,trust companies participated in the investment in this field mainly using the political and letter cooperation model,because the trust companies bear less risk under this model.In recent years,the State Council and various ministries and commissions have successively issued policy documents on the PPP model in order to prevent and control the local government's debt risk,and vigorously promote the PPP model.As a result,traditional political and letter cooperation has been affected and it cannot be implemented in this area.Against this background,the trust company must carry out mode transformation and participate in infrastructure construction with the PPP model.However,due to the fact that the practice of trust participation in PPP projects is still relatively small,while PPP projects also hide a lot of risks,trust companies face opportunities as well as great challenges.This article first sorts out the research results of domestic and foreign scholars from four aspects,and then introduces the theory related to this article.This paper selected the PPP project led by China's first single trust and successfully landed-CITIC Tangshan World Park PPP project as a case,mainly introduced the project overview,participants' situation and project significance.Subsequently,under the guidance of the previous theory,the case was analyzed in detail from the aspects of advantages,difficulties,project risk management and CITIC Trust's full-process risk control strategy of CITIC Trust in participating in the PPP project.The analysis found that CITIC Trust has great advantages in participating in PPP projects,but it also has difficulties in solving the difficult problems such as low investment return rate,poor legal system,difficulty in risk prevention and control,lack of professional talents,difficulty in selection of participation methods,and participation in PPP.The entire process of the project will also face a series of risks such as legal,market,operation,transfer,political and natural environment risks.These risks require the government and trust companies to jointly undertake and respond.Finally,based on the analysis of theories and cases,this paper draws corresponding conclusions,and puts forward suggestions on the risk management of PPP projects from the perspectives of government and trust companies.From the perspective of the government,it can strengthen risk management by establishing and improving relevant laws and regulations,strengthening the contractual spirit of local governments,and establishing a structurally clear project risk management mechanism.From a trust company's perspective,it can strengthen risk management by selecting appropriate PPP projects,strengthening research on government policies,and improving risk management capabilities.This article through the case analysis of the risk management of CITIC Trust's involvement in the PPP project of Tangshan World Horticultural Exposition,can help the trust companies in the entire industry to strengthen risk management and ensure the smooth construction and operation of PPP projects.