Analysis On The Application Of The Asset Securitization Of The Right Of Return In PPP Projects

Since the promulgation of No.76 document for fiscal and No.2724 document for investment of development and reform,the public-private cooperation PPP mode has set off a boom in China and become an important tool for supplementing infrastructure construction funds and alleviating the pressure of government debt.However,the PPP project has the characteristics of large investment scale,long operation period,lack of exit mechanism and many risks,which lead to the lack of social capital in PPP project.China has accumulated some experience of asset securitization both in our theory and practice.On December 26,2016,the Development and Reform Commission and Securities Regulatory Commission jointly issued《Notice of related work about advancing the cooperation between government and social capital and asset securitization(PPP)project in traditional infrastructure 》 to promote the deep integration the PPP project and asset securitization.This marks PPP asset securitization has entered into a rapid development period.Nowadays,the research on PPP asset securitization is still in the preliminary stage of theoretical exploration.There is relatively little study of practice on how to combine PPP project with asset securitization in practice,how to design the product transaction structure,what kind of characteristic of basic assets should be possessed,how to prevent or control core risk and other problems.Based on this,this paper explores the practical application of the securitization process in the PPP project by analyzing the first the PPP asset securitization project-the Pacific Securities Xin Shuiyuan Sewage Treatment Service Charge and Benefit Asset Support Special Plan.The core problem of this paper is the application of assets securitization in PPP project.Firstly,the necessity of asset securitization in PPP project is analyzed based on the financing dilemma of PPP project in China.Taking into account the characteristics of China’s PPP project,this paper will focus on the combination of usufruct asset securitization and PPP projects.This paper also introduces the connotation and operation principle of usufruct asset securitization.And then it compares the new water resources PPP asset securitization project with other three PPP asset securitization products that have been landed to analyze the characteristics and advantages of the project from the intuitive grasp.Then,based on the complete path of cash flow,the paper analyzes the structural design and risk control of the product transaction in this case according to the framework of "basic asset analysis → related subject analysis → transaction structure analysis" and clarifies the conditions and design points of the PPP project that intends to carry out asset securities in the key link of the product transaction structure.Finally,the potential risk points and the corresponding improvement measures of this case are put forward.These suggestions can be extended to other PPP asset securitization projects.The innovation of this paper lies in: First,this paper explores the concrete application of the assets securitization in the PPP project by taking the PPP financing problem as the starting point;Second,taking into account the general characteristics of PPP projects in China-that is,the project operating income is mostly the right to charge usufruct,this paper will focus on the specific combination and application of asset securitization and PPP Mode,which is more targeted;Third,this paper chooses the first successful issued PPP asset securitization project.Because the release time is short,there is lack of comment and research about it.It is innovative to chooses it as the case both in the design of the research framework,and the selection of research methods.