Research On Commercial Banks Of China Participating In PPP Project Practice

PPP is the abbreviation of public-private partnership,which is a long-term cooperative relationship between government and social capital in the field of infrastructure and public services.In 2013,the Third Plenary Session of the 18 th CPC Central Committee,China's PPP model has attracted the attention of people from all walks of life.At present,China is in a critical period of strategic transformation and upgrading of new urbanization development.The continuous increase in the level of urbanization reflects not only the trend and direction of China's market economy development,but also an important measure to improve people's livelihood and optimize the economic structure.The extensive application of the PPP model will help promote the healthy and stable operation of the national economy and lay a solid foundation for the new urbanization.The economic development must break through the shackles of the traditional financing model and create a new financing model that involves multi-party capital participation and risk and benefit coordination.The PPP model serves as a relief for the government's fiscal pressures,reducing local debt risks,revitalizing stock assets,and increasing infrastructure and public use.The effective supply model of public services in the business sector will become one of the most important options for China's infrastructure construction.For commercial banks,as the most important financial institution in China's economy and society,Participation in PPP projects is also a matter of course,and the development of the PPP model will be its biggest investment opportunity.However,in the face of new areas,commercial banks will face risks that differ from traditional credit financing,such as changes in the source of repayment,sources of credit enhancement guarantees,risk controls,etc.How to seize opportunities,avoid risks in the current economy,make positive progress under the current situation,change the traditional profit growth model and explore new profit growth points in the PPP model is a new topic for commercial banks.Based on the above situation,this paper starts from the perspective of commercial banks and analyzes the practice of commercial banks participating in PPP projects in specific cases.First of all,through the analysis of China's economic background,the e nvironment generated by the PPP model was elicited.Then,the article selected some commercial banks as specific research cases and analyzed the correlation between the source of commercial bank revenue and the source of PPP project funding.It was poi nted out that commercial banks participating in the PPP project will bring many oppor tunities for them.However,from the perspective of current commercial banks participa ting in the two major investment and financing methods of loans and financial manag ement of PPP projects,their participation in PPP will also have a certain disadvantage,and put forward the current commercial banks' problems and risks in participating in PPP.And next taking the commercial bank as the entry point,based on the specific case of the construction of the first phase of the Zhengzhou Metro Line 3,a concretestudy was conducted on the opportunities and risks of commercial banks participating in the PPP project.Finally,based on issues and risks,commercial banks participate i n the PPP model and put forward internal and external recommendations.and also for ecasts their future development prospects during commercial banks participating in the PPP model.Due to the great differences between PPP project financing and general pr oject financing,this article focuses on the study of the social background and develop ment ideas of commercial banks participating in PPP projects.Through this understand ing of integrity and essentiality,it is hoped that commercial banks can participate in t he overall strategy of PPP projects.It also provides feasible suggestions for the formu lation of specific or participatory models,and provides some reference for the construc tion of rail transit in Henan Province and throughout the country.