The Development And Pricing Analysis Of The Infrastructure Asset Securitization In China

Asset securitization originated in the United States,and then gradually has been widely used in various industries.In the 1990s,China began to get involved in asset securitization,because of the constrained domestic regulatory requirements and capital market environment,the development of it is slow.However,in 2013,the Securities Regulatory Commission issued a relaxation of the scope of the underlying assets in asset securitization transactions,the development of China’s asset securitization ushered in a new opportunity.This paper first gives a brief introduction of the relevant basic concept definition,and then combs and summarizes the main documents of domestic and foreign scholars studying the issue of asset securitization.After studying the characteristics of China’s infrastructure,I find out that these projects have a large demand for funds,long construction periods,and low yields.The construction and management of China’s infrastructure are more dependent on government departments.The state budget allocation,government bonds,bank loans and the franchise rights promulgated by governments are all the common used applications of financing.While the use of capital market to raise private capital,social capital and other capitals is less.These traditional ways to raise construction funds of the infrastructure projects have a certain effect,but still can not really solve the problem of funds requirement.The advantages of asset securitization in the market for public financing can provide a way to solve this problem,thus expanding the fund resources of the infrastructure construction.With the rapid development of asset securitization in financial markets,pricing has become the key to the successful issuance and widespread circulation of the asset-backed securities.This paper introduces several existing pricing models and their respective applications,and provides a theoretical basis for the pricing analysis in the subsequent case.As a result,the infrastructure securitization has been well developed in China.In order to study the analysis and application of the pricing models for infrastructure asset securitization more deeply,this paper takes Yangzhou affordable housing as an example.After briefly analyzing the operation process of the case’s whole asset securitization,a selected pricing model and other traditional pricing models are used to empirically test whether the pricing in this case is reasonable.In the selection of the appropriate pricing model,taking into account that the investment infrastructure projects will exist a real option concept,so this paper uses the binomial tree option pricing model for the empirical testing.The results show that the existence of real options will have a certain impact on pricing.If the value of the option is taken into account,then the pricing in the case is overestimated and may affect the future circulation of the asset-backed securities.The last part of this paper makes a summary,putting forward that asset securitization is a kind of financing way for the construction of our country’s infrastructure.In the pricing part,the pricing model should be used in consideration of the characteristics of the infrastructure.Considering the real option is not a denial of the existing pricing model,it is a supplement to the pricing model for the characteristics of the infrastructures,which can provide a new idea for the later pricing research of infrastructure asset securitization.