Research On Assets Backed Securitization Financing Mode And Its Financial Risk In Power Industry

The power industry has been the key supervision and management field of our government because it concerns the basic livelihood of our people.Due to its characteristics of heavy assets,long construction cycle and slow capital turnover,the industry has been in a situation of slow growth,great impact by policies and poor financing environment.In the past,financing of the power industry was mainly financed by financial allocation,bank loans and equity issuance.However,with the deepening of China's supply-side reform,enterprises are required to strictly control the asset-liability ratio and reduce operational risks.At the same time,along with the tightening of various financing channels,it is increasingly difficult for enterprises to raise funds.In order to obtain sufficient funds and reduce the asset-liability ratio,power industry enterprises began to try asset backed securitization financing.Since its origin in the United States in the late 1960 s,enterprise asset backed securitization has experienced decades of development,and has become an important financing method in both theory and practice.Although China briefly dabbled in overseas asset backed securitization business in the mid-1990 s,it didn't start the formal development of asset backed securitization in China until 2005.After the financial crisis in 2008,China's asset backed securitization business went through a period of suspended phase,and did not enter the stage of rapid development until it was restarted in 2012.Asset backed securitization,a new financing method,is bound to provide necessary help for the development of the power industry due to its advantages such as relatively low financing cost,high flexibility and the ability to improve enterprise asset liquidity and cash flow.At the same time,the new financing model makes the electric power enterprise closely linked with the capital market,promote the combination of the electric power industry and the financial industry,solving the problem of electric power industry enterprises financing provides the channel and the financing difficulties,promoting the sustainable and healthy development of the electric power industry,provides an efficient and low-cost financing for the development of the enterprise.Through the research on the advantages of asset backed securitization,China is generally optimistic about the impact of asset backed securitization on the financial effect of enterprises,but there is little research on the impact of asset backed securitization on the financial risk of enterprises.Therefore,we take the financial risk of enterprise asset backed securitization business as the focus of analysis and research.*ST kaidi is the leading green biomass power generation enterprise in the power industry,the production and operation mode also have the power industry's unique characteristics of heavy assets and low turnover.*ST kaidi's asset backed securitization business,as an early attempt of the asset backed securitization attempt in the power industry,is characterized by large amount of financing and wide range of basic assets.The analysis and research on the asset backed securitization business of *ST kaidi will help guiding the power industry to carry out asset backed securitization business.In addition,due to the * ST kaidi is given special treatment in the third year after the implementation of the asset backed securitization caused by asset backed securitization locking money,although asset backed securitization has its advantages,but also because of the full analysis and considering the risk,constantly on the alert against the financial risk of the financial product,need to develop effective risk control measures,so as to guard against and avoid possible financial risks.This paper is divided into five chapters:The first chapter mainly introduces the background,significance,method,thinking and content of the research as well as the innovation and deficiency of this paper.The second chapter is the collation and theoretical analysis of the literature related to financing,financial risk and asset backed securitization in the power industry.The third chapter is the analysis of asset backed securitization model and relevant institutional background.The fourth chapter takes *ST kaidi's asset backed securitization of power income rights as an example to study the impact of enterprise asset backed securitization on power industry enterprises and the financial risks it brings.The fifth Chapter summarizes the impact of asset backed securitization on power enterprises and the financial risks it brings,and puts forward opinions and Suggestions to the parties involved in the asset backed securitization in the power industry.Through the case study of *ST kaidi,we find that asset backed securitization does have its advantages,but the financial risks brought by this new financing mode cannot be ignored.Due to the short development time of asset backed securitization business in China,both initiators and investors should fully realize the possible risks while vigorously developing the business,so as to standardize the definition of basic assets,prevent excessive asset backed securitization and improve the financial risk management awareness of enterprise managers.Regulatory authorities should also further improve the relevant laws and regulations,strengthen the guidance and standardization of policies,and further strengthen the guidance and supervision of asset backed securitization in the power industry.