Asset Securitization And Risk Pricing In PPP Project

With the development of China's reform and opening-up,the pace of urbanization is constantly advancing.In this process,the demands for public infrastructure investment is increasing,which places great pressure on the fiscal expenditure and makes the high-quality social capital being prone to idleness.To solve these problems properly,Premier Li Keqiang discussed the promotion of the government's purchase of public services from social forces in 2013 executive meeting of the State Council,he finally clarified that public service issues could be provided in a marketable way.At the same time,the country continuously introduced relevant policies to encourage the development of government-enterprise cooperation that is the PPP model,the local governments have also given positive feedback to this,and most of the public infrastructure construction has adopted the PPP model.In order to solve the plight of PPP projects with large capital requirements and financing difficulties,the National Development and Reform Commission jointly with the China Securities Regulatory Commission have launched the PPP project asset securitization on December 12,2016.Asset securitization of PPP projects can improve the capital use efficiency,accelerate the asset turnover,and provide a certain exit path for them.The PPP has the advantage of improving the efficiency of social infrastructure construction,the promotion of its development can provide a stronger driving force for China's future construction.However,the pricing of PPP project asset securitization and risk are uncertain,which must be solved firstly to successfully securitize PPP projects.Taking PPP project asset securitization pricing and existing risks as the entry point,this thesis adopts financial,statistical and other related knowledge to analyze the case of asset securitization of Huaxia Happiness Gu'an Jiutong PPP project,using Monte Carlo simulation to price it,and compare it to the actual distribution situation to find that this method has certain reference significance.Four specific conclusions of this paper can be made as follows: it has certain reference significance of using Monte Carlo simulation for pricing;the process of enhancing the securitization of assets can escort the liquidity of asset-backed securities;the implemention of PPP projects cannot be blind and should be in accordance with the actual situation of the local government;in the process of asset securitization of PPP projects,the basic assets are the key to its successful asset securitization.