Analysis Of The Reasons For Default Of The "Yinxiang 350" Zhengxin Trust Project

In recent years,the China Banking Regulatory Commission has put forward strict regulatory requirements for local governments to invest and finance through banks,which has prompted local governments at all levels to seek more diversified financing channels to shorten the financing cycle,and political and letter cooperation has quickly become one of the emerging financing channels of local governments with this flexible and rapid characteristic.This mode of cooperation not only meets the financing needs of people's livelihood construction at all levels of government,but also guarantees the stable development of the trust industry to a certain extent.However,it should not be ignored that in the government's infrastructure projects in the rapid launch,the project pre-stage due diligence is not sufficient,some local government financing needs have exceeded its affordable range,the government's high debt behind the hidden huge political and letter cooperation risks.In order to effectively reduce the risk of such projects,early risk identification in all aspects of the project,investors and trustees should reasonably analyze and determine the risks involved in all aspects of the project.In this paper,the Silver Elephant 350 political and letter cooperation project jointly established by Alasan Alliance Infrastructure Investment Co.,Ltd.and Z Trust Company as the object of the case study,based on the analysis of different aspects of the object involved in the case,explore the key points of the risk of project default,and put forward corresponding recommendations.The results show that the risks of Z Trust Company's Silver Elephant350 political and letter cooperation project come from four aspects,the operational risk of the trust company,the risk of policy and regulation,the risk of the city investment enterprise itself and the risk from the local government.In addition,this paper adopts the BP-KMV model,takes the business content and business model as the reference condition,selects Wind classification as the real estate development enterprise as thesample enterprise risk early warning analysis of the case enterprise,the results show that the case enterprise default risk is very high,need to attract the attention of trust companies and investors.At the same time,the city investment companies,local governments and trust companies to make recommendations,urban investment enterprises in the best efforts to meet the times changes,meet the policy requirements,adjust operations,Increase disability of its own operations,local governments to straighten out the relationship between government and enterprises,resolve government debt at the same time,trust companies also need to comply with policy requirements,through various means to improve the professional quality and professional ability of internal staff,strengthen risk control.