Research In Risks And Countermeasures Of Asset Securitization In PPP

Under the background of a new era in which the national government actively develops the PPP(Public-Private-Partnership,hereinafter referred to as PPP model)model development and asset securitization business,PPP project asset-backed securities have been vigorously promoted.In 2016,the National Development and Reform Commission and the China Securities Regulatory Commission jointly issued the “Circular on Promoting Asset Securitization of Government and Social Capital Cooperation(PPP)Projects in the Field of Traditional Infrastructure”,which clearly proposed the promotion of asset securitization of PPP projects.It can be concluded that relevant policies encourage and support the introduction of asset securitization in PPP projects.The introduction of asset securitization in PPP projects is one of the important ways to solve its financing difficulties,and it is also one of the important measures for the government to lay out financing for PPP projects.The asset securitization of PPP project has many irreplaceable advantages.In order to promote the securitization of PPP project assets,it is necessary to analyze and manage the risks in the process,which has important practical significance for ensuring the sound development of PPP project asset securitization.This article selects the Huaxia Happiness Gu'an Industrial Park PPP project asset support special plan as a case study to analyze its risk issues.First,it introduces the theoretical basis and existing research results of PPP project asset securitization risk.Then,through analysing the basic situation of asset securitization of PPP projects in the market,the structural design and the profile of participating entities,the risk issues that are common in such projects are revealed and the risk of asset securitization in PPP projects is summarized: risks associated with basic assets and participants Related risks,market risks and other risks.On the basis of the above classification,the risks faced at the current stage of asset securitization of PPP projects are analyzed.The core risk is the risk associated with the underlying assets.It mainly includes legal ownership risks,high concentration of basic asset industry risks,and cash flow forecasting risks.The main countermeasures are optimizing the quality of basic assets and adopting appropriate internal credit enhancement measures;The risks associated with the participating entities mainly include the bankruptcy risks of the original equity person,the continuing operation risk of the project company,the credit risk of the third party guarantor,and the due performance risk of the participating institutions.The countermeasures mainly include strengthening the ability of the participating parties to perform their duties and adopting appropriate external growth.Letter measures and so on;Market risk generally includes interest rate risk and liquidity risk.Other risks include tax risk,policy and legal risk,technical risk and operational risk.The countermeasures mainly include the improvement of the secondary market trading mechanism,the improvement of relevant policies and regulations,and the comparison with the first batch of projects of the same type that have landed on the market,and then make recommendations on the future financing risks of asset securitization in PPP projects.Finally,the following conclusions are drawn:1.Under the current background of China's policy environment,legal environment,and market environment,there are many risk issues in asset securitization of PPP projects,such as risks associated with basic assets,risks associated with participating entities,and market risks.Other risks,etc.These risks are caused by objective facts and cannot be avoided in time.Only appropriate response measures are taken to prevent and control risks.2.Risks related to basic assets mainly include risks of legal ownership of basic assets,high concentration of basic assets industry,and unpredictable cash flow forecasts;risks associated with participating entities mainly include bankruptcy risks of original equity holders,and Projects of basic assets The company's continuing operations risks and participating institutions' due performance risks;market risks mainly include interest rate risks and liquidity risks;other risks include tax risks,policy and legal risks,technical risks and operational risks.3.Risk control related to basic assets should be based on optimizing the quality of basic assets and adopting various flexible credit enhancement measures;and the risk prevention and control related to the participating entities should strengthen the performance capacity of the original rights holders,prudently select rating agencies,and improve Management services professional standards;market risk and other risk prevention and control need to improve the secondary market trading mechanism;improve relevant policies and regulations.