Case Analysis Of Insurance Funds Participating In Beijing-shanghai High Speed Rail Project

In recent years,insurance investment has given rise to new vitality.The investment in insurance funds requires small risks,stable returns,and matching deadlines.Constantly seeking quality investment projects has become the goal of the insurance asset management department.With the accelerating pace of urbanization,the country has begun to vigorously develop the construction of transportation infrastructure.The development of road network planning and “One Belt and One Road” construction of "ten horizontal and ten vertical" roads is an important consideration for insurance companies as important investors.It is both an opportunity and a test.China's participation in transportation infrastructure projects by insurance companies can be said to be a faster-than-experience theory.Because of the long project cycle,many studies are only predictions and have not been combined with actual data for analysis and research.This article will conduct a comprehensive analysis of the case based on the perspective of the insurance company.Based on the case of Ping An's participation in the Beijing-Shanghai high-speed rail project,this article combines the relevant data and information of the Beijing-Shanghai high-speed rail in actual operation,and in-depth analysis of the motivation,investment model,project value,and risks of the insurance company's investment in the Beijing-Shanghai high-speed rail project.In terms of participation,this article believes that insurance funds are involved with the support of China Insurance Regulatory Commission.Its investment requirements are in line with the Beijing-Shanghai high-speed rail project.The investment income of the Beijing-Shanghai high-speed rail project is good and it has a value-added value.At the same time,insurance companies have also participated in the project and obtained business.Resources,these are the reasons why insurance companies will participate in the Beijing-Shanghai high-speed rail.In the investment model,insurance companies take the form of equity-debt participation in parallel.After separately introducing the advantages anddisadvantages of the equity investment plan and the debt investment plan,the method of paralleling the equity and debt was analyzed.At the same time,insurance funds were used to participate in the Beijing-Shanghai using AHP method.The high-speed trains can participate in the scoring and ranking of the participating channels,and the first conclusion of this paper is that insurance companies choose the parallel investment method of stocks and bonds to take into account risks and benefits.Since the Beijing-Shanghai company is not listed,this paper uses the free cash flow method under the relative method and combines the data collected in previous years to predict the future cash flow of the Beijing-Shanghai high-speed rail project and reasonably calculate its expected return rate and weighted average capital.In the end,the current value and net present value of the Beijing-Shanghai high-speed rail project are calculated,and the second conclusion is that the net present value of the Beijing-Shanghai high-speed rail project is 29.5 billion yuan,and the project quality is worth investing.In terms of risk,VaR method was chosen in this paper.Based on the data of Ping An of China,the value of VaR of each asset in its investment portfolio was calculated and compared.At the same time,the internal risks of insurance companies and the risks in investment projects were also analyzed.The third conclusion of this paper is that the risk characteristics of infrastructure projects are good and are in line with insurance investment requirements.Finally in the fourth chapter,some suggestions are put forward for the insurance companies investing in traffic infrastructure projects.