The Analysis Of The Risk Of Asset Securitization Of PPP Projects And Its Prevention

For the past few years,with the help of the PPP model for financing,local governments get a lot of support in public infrastructure.However,in the context of the rise of the PPP model,due to strict compliance audits of PPP projects,difficulties in recovering social capital at the end of PPP projects,and imperfect exit mechanisms,the participation of social capital is becoming less active.In order to solve the problem of the lack of enthusiasm for social capital participation in China's PPP model,Circular 2698 on PPP projects in late 2016,which regulated the basic assets and original equity holders of PPP project asset securitization.The securitization of PPP project assets was first proposed in government documents.With the active development of the Chinese government,the PPP model and asset securitization of PPP projects have been continuously improved.The securitization of PPP project assets not only links the PPP project and the capital market without barriers,so that the government's financial difficulties can be resolved,the addition of social capital reduces the time it takes to allocate resources in the public service field,it improves the quality of services and relevant conditions for the construction of public infrastructure in China.Because the entire process of PPP project asset securitization takes a long time,and the participants are diverse and complex,these characteristics bring various risks to the project operation.Therefore,risk prevention and control cannot be ignored during the development of asset securitization of PPP projects.This standardization research,the value,operation process,and risk-related literature of PPP project asset securitization are reviewed and summarized first.In the case analysis section,integrating the first asset securitization of the country's parking lot PPP project,the West China Securities-Chuantou PPP project asset support special plan(hereinafter referred to as the "Chuantou PPP project")is used as the research object,and the background of the securitization of the Chuantou PPP project and the feasibility of the project implementation are introduced in detail And the various components of the operation process,the possible risks and preventive measures of Chuantou PPP project are discussed.This article is mainly composed of the following five parts.The first chapter is the introduction.This section introduces and explains the background and significance of the topic of this article,collects and organizes the documents that are closely related to the topic,then explains the research ideas and methods of this article,and finally lists.The relevant overview,characteristics,types of risks and theoreticalbasis of risks related to asset securitization of PPP projects are elaborated;the third chapter is the case introduction.This part analyzes the basic situation and feasibility of Chuantou PPP project,and then introduces the specific implementation plan of asset securitization;the fourth chapter is case analysis.From four perspectives related to basic assets,participating entities,asset-backed securities and others,the risks and countermeasures of Chuantou PPP project are analyzed;the last chapter is the case conclusion and inspiration.Through the foregoing analysis,three points about the advantages of the successful issuance of Chuantou PPP project and risk prevention measures are put forward,which can bring the industry unique advantages for reference and reproducibility.First,the selection of qualified basic assets is a prerequisite for risk prevention,which has laid a good and solid foundation for the project's future asset securitization operation.Second,the use of the dual SPV(Special Purpose Vehicle)model can enhance the effect of bankruptcy and isolation,and the original equity owner can achieve its Indirect holding and ultimate control of basic assets;Thirdly,the establishment of a reasonable transaction structure helps to increase internal credit,which has increased the confidence of social investors and financial institutions in investing in PPP projects to a certain extent.Finally,three points are suggested: first,a complete legal system should be established to ensure the smooth implementation of asset securitization of PPP projects;second,the transaction mechanism should be improved to promote asset securitization of PPP projects to reduce The role of transaction costs,increasing the liquidity of the secondary market,improving high-quality capital,and increasing customer motivation;third,innovations in bankruptcy isolation should be made to protect the legitimate interests of investors.The contribution of this paper is mainly manifested in the following: Previous research on asset securitization of PPP projects in our country mainly focused on the fields of sewage treatment,garbage treatment,and municipal water supply and heating,and few studies were conducted on urban public parking projects.This paper studies Chuantou PPP project,which enriches the research literature on asset securitization of urban public parking PPP project.