Research On Pricing And Credit Design Of China’s PPP Project Asset Securitization

Since 2014,the central government has strongly advocated the use of PPP mode to promote the construction of infrastructure and public utilities.The scale of PPP projects has increased dramatically.So far,the total investment of PPP projects nationwide has reached 17,800 billion yuan.But the signed PPP project is only 4,100 billion yuan,and the landing rate is low to 23%.The reason is that the domestic PPP projects generally have such problems as the long investment and construction period,the low return rate,the government’s failure to provide guarantees and the unreasonable risk sharing,which leads to the limited exit of social capital.In order to solve the problem of PPP projects,this paper mainly explores the application of asset securitization in the PPP project,and puts forward a set of practical and feasible PPP project asset securitization program to solve the problem of PPP in the process of the development of financial instruments and the lack of financing maturity mismatch dilemma from the capital market level.This paper first expounds the connotation and development of the asset securitization of PPP project,analyze and summarize the PPP project asset securitization’s transaction structure,operation process and business model,and to study the main line of the PPP project’s ABS product pricing and credit for the design,through the analysis of specific cases to get the corresponding conclusion,which is based on the fact that the PPP project cash flow’s return path depends on the strongly,the PPP project’s ABS product pricing should adopt the Monte Carlo simulation calculation,the design also needs to increase trust products tailored to fine design reasonable price PPP project asset securitization products.