Financial Effect Of Asset Backed Securitization

In recent years,in order to solve the problem of difficult capital financing and debt pressure in highway industry,all ministries and commissions of the state encourage state-owned highway enterprises to introduce equity funds by activating stock assets and applying financial innovation.April 30th,2020,CSRC and the National Development and Reform Commission jointly published "on the promotion of infrastructure REITs pilot related work notice ".On the same day,the China Securities Regulatory Commission(CSRC)invited comments on the guidelines for the public offering of infrastructure securities investment funds(for Trial Implementation)(draft for soliciting opinions).The pilot implementation of public offering REITs will bring great changes to China;s infrastructure investment and financing system,and will have a far-reaching impact on China’s capital market.REITs pilot will bring great changes to China’s infrastructure investment and financing system and have a profound impact on China’s capital market.On the one hand,based on the current situation,revitalizing the stock of infrastructure assets can help local governments to achieve refinancing,promote infrastructure industry upgrading and faster and better investment in new infrastructure;on the other hand,in the long run,This provides new exit channels for basic asset investors,forms new social financing methods and strengthens the real economic capacity of financial services.Under the dual influence of macro policy and internal financing needs,it is particularly important for infrastructure construction enterprises to understand the REITs.The successful issuance of the Zhejiang Expressway Company’s Anhui-Hangzhou Expressway Asset Project is the first attempt in the field of infrastructure to "stock-driven increment" sustainable development model.It has officially opened the channel for low-cost market-oriented funds to participate in the construction and investment of expressway.What’s more,it is significant for the establishment of long-term development mechanism in China’s infrastructure field.As a result,this paper takes the Zhejiang Expressway Company’s Anhui-Hangzhou Expressway Asset Project as the research object,and tries to explore the financial effect of the REITs product on its original owner,Zhejiang Expressway Company.This paper first reviews the literature on REITs definition,Securitization,financial effects and Securitization’s financial effects,and has a preliminary understanding of REITs and Securitization,at the same time,the research methods and research scope of this paper are determined,that is,the financial effect analysis is carried out from the four directions of financing cost,financial performance,financial risk and market income,and the quantitative and qualitative analysis is combined,by comparing the situation before and after the implementation of the Securitization,the positive financial effect and the showing problems after the implementation of the project are thoroughly discussed.Through the analysis,it is found that the special plan issued by Zhejiang Huhangyong Company has the effect of reducing the financing cost,but it does not have a particularly significant impact on the financial performance of enterprises,because of the nature of the special plan debt with interest,the financial risk of the enterprise is obviously increased,and the issue of the special plan is obtained through the analysis of the event research method,which to a certain extent causes the decrease of the market income of the enterprise,in the form of a decline in stock prices.In view of the above analysis results,this paper offers some corresponding suggestions on raising the operation ability of enterprises,reasonably controlling the financial risks,optimizing the REITs products,and obtains that enterprises have to grasp the opportunity to branch out new financing channels,the government should strengthen the guidance to support the innovation of financial instruments.