Study On Risk Control Of Income Rights Securitization

With the integration of China’s financial industry and international finance,China’s financial market is facing severe challenges,but also exposed some problems.The basic situation of China’s financial market structure is that the proportion of indirect financing is far greater than that of direct financing.The information of investors and financiers is seriously asymmetrical,and it is difficult to obtain mutual information.Investors have no way to control investment risks independently.The proportion of financial products directly financed in China’s financial market is very low and cannot meet the needs of investors.As a direct financing product,asset securitization products can fill the gaps in the market,facilitate the structural optimization of the financial market,create conditions for the opening of the capital market,and promote the structural reform of China’s financial market system.On March 15,2013,the CSRC issued the “Regulations on the Management of Asset Securitization of Securities Companies”.This provision expands the scope of asset securitization,including infrastructure income rights,which provides an opportunity for innovation in corporate financing.At the same time,with the continuous advancement of China’s urbanization and industrialization process,the contradiction between China’s economic and social development and resource and environmental constraints has become increasingly prominent.In order to balance the relationship between environmental protection and economic development,China has increased its efforts in environmental protection.The “Twelfth Five-Year Plan” proposes to accelerate the construction of a resource-saving and environment-friendly society.Various heavy-duty policies on environmental protection are frequently introduced,such as the implementation of the new environmental protection law,the publication of “Water Ten”,environmental pollution third-party governance,environmental taxes,etc.These will directly promote the development of China’s water enterprises.However,China’s water companies are faced with low concentration of water industry,huge funding gaps and financing problems.The combination of infrastructure income rights and asset securitization in the water industry provides an effective solution to the problem of financing difficulties for water companies.As the variety of basic assets continues to increase and the industry continues to expand,asset securitization has become the most sought-after financing methods.However,the subsequent ABS default incident of the Dacheng West Yellow River Bridge gave a painful lesson to the market of barbaric growth.The future cash flow of the income-based base assets depends on the operating conditions of a certain operating entity,which makes such products vulnerable to the original owner’s own situation and external economic risks.Therefore,paying attention to the risk identification and control of asset securitization is the prerequisite for its healthy development in China’s financial market.This paper studies the risk of securitization of income-rights assets and its control measures from the viewpoint of the involved in asset securitization.The aim is to perceive and take note of the risks in the rapid development of asset securitization.This paper first introduces the research background and research significance of risk-based asset securitization risk control,and expounds the research ideas and research methods of this paper.At the same time,based on the analysis and review of related research at home and abroad,it also focuses on asset securitization at home and abroad.The current research situation and the main problems existing at present are analyzed.Then,it introduces the basic characteristics of the securitization of income-rights assets and the general risks and control measures of securitization of income-based assets.Thirdly,taking the securitization of the income-right assets of the Beijing Capital Co.,LTD’s sewage treatment project as an example,the relevant components of the income-rights securitization of wastewater treatment project were introduced.In addition,in combination with laws and regulations,regulatory environment,asset securitization product structure,relevant parties,etc.,the risk of securitization of income rights assets of Beijing Capital Co.,LTD’s sewage treatment project is described in detail,and its risk control measures are analyzed.Finally,according to the whole process of securitization of income rights assets of Beijing Capital Co.,LTD’s sewage treatment project,this paper draws four conclusions: flexible use of multiple financing methods to solve the financing gap of infrastructure construction projects,issuers should choose high-quality basic assets for asset securities The improvement of information communication mechanisms and collection mechanisms will help control project risks,accelerate the construction of systems,and foster a complete market system.Based on the characteristics of the securitization of income-rights assets,this paper analyzes the general risk types faced by China’s income-rights assets securitization,and analyzes the risks of securitization of the income-of-rights assets of Beijing Capital Co.,LTD’s sewage treatment project,and finds that the risks mainly come from In the financial market environment and project implementation process,in this paper we has analyzed a series of risk management measures taken by the project in response to the above two risks.It is hoped that through the research of this paper,it will provide a certain reference for the development of the theory and practice of asset securitization in China’s sewage treatment and infrastructure construction projects.