On Problems And Countermeasures Of Asset Securitization In PPP Project

Since 2014,the state has issued a series of policies and measures to promote the development of PPP projects.Nevertheless,due to the limited financing channels and the lack of exit mechanism,the enthusiasm of social capital to participate in PPP projects is not high,and the landing rate of PPP projects is low.As asset securitization can effectively activate a large number of PPP projects’ stock assets,broaden financing channels and reduce the financial pressure of the government,on December 26,2016,the state officially launched it.At the same time,it issued relevant policies and measures to guide the development of PPP project’s asset securitization business,so that which can promote the development of China’s PPP market and meet the financial needs of public foundation.However,due to its short launch time,there are still many problems in the process of development.How to solve and improve these problems in order to make PPP asset securitization a better promotion,application and steady development is of great significance.This paper chooses the first batch of typical cases of PPP project asset securitization,"the new urbanization PPP project of “China Fortune Land Development Gu An Industrial Park in Special Plan for Asset Support of Heating Fee Income Right”,and uses case analysis method to study the current PPP project asset securitization market in China.Firstly,combined with financial data,this paper analyses the operation of several main participants in the special plan,then analyses the forecast of basic assets and cash flow,and finally the way of credit enhancement.The study finds that there are some problems in this case,such as the single type of basic assets,the failure of real bankruptcy isolation of basic assets,the problem of cash flow covering principal and interest,the lack of external means of credit enhancement,the long term of PPP asset securitization products and the lack of diversified qualified investors.Based on the analysis of these problems,this paper proposes a series of solutions,such as enriching the types of basic assets,improving the bankruptcy isolation mechanism of basic assets,cultivating a complete and mature market system and introducing multiple investors,in order to solve the problems faced by PPP asset securitization,so as to attract more strategic investors and ensure the long-term capital source of China’s infrastructure projects.At the same time,it provides some references and ideas for other scholars who study PPP project asset securitization.According to the analysis of the Hua Xia Happiness Project,which is one of the first PPP project asset securitization projects in China,this paper holds that the introduction of PPP project asset securitization to a certain extent makes up for the shortcomings of large investment and long payback period of PPP project,can effectively activate the stock assets of a large number of PPP projects,is a powerful measure to promote the current investment and financing reform,and can alleviate the financial pressure of the government and allocate them efficiently.It is of great significance to purchase social capital and social resources.