Research On Financing Risk Prevention In China’s Garden Industry PPP Mode

In recent years,due to the continuous increase in government debt and the increasing demand for public infrastructure,the Chinese government has begun to promote the PPP model to reform the supply structure of public infrastructure.There are still obstacles.The essence of the PPP model is to introduce the private sector into public infrastructure construction,but garden companies have also had difficulties in financing for a long time,and the construction and operation of PPP projects require a large amount of funds,and the project cycle is long and the payment is slow.Garden enterprises will inevitably raise financing risks after participating in the PPP model.This article studies the financing risks of the garden industry under the PPP model.Based on a systematic analysis of the current financing situation of garden enterprises in China and the characteristics of the PPP model,this paper draws the following conclusions:(1)The current national policy promotes the PPP model,and the garden enterprise follows the policy to vigorously develop the PPP model.A large number of engineering projects also enable garden enterprises to complete the process of developing from a single garden enterprise to a comprehensive enterprise in a short period of time.However,while the garden industry is facing huge opportunities,it also needs to prevent a series of risks caused by the PPP model.(2)According to the characteristics of the garden industry and the characteristics of the PPP model,it is concluded that the financing risks of the garden industry under the PPP mode are mainly manifested in:1)financing planning risks;2)financing period structure risk;3)risks arising from financing guarantees or mortgages.(3)According to the analysis of BEG companies,under the PPP mode,garden companies often have blind expansion behaviors beyond their own scope,which causes tension in the capital chain,and garden companies often cannot change their roles in a timely manner,and rely too much on short-term funding,making The investment and financing maturity structure cannot be matched,resulting in varying degrees of financing risks.(4)This study believes that garden companies can manage the financing risks arising from participating in PPP projects from the following and various parties:1)Reasonably plan the pace of corporate development and prevent blind expansion;2)Develop a financing plan in advance and proceed in a planned manner Financing;3)Make full use of various funding channels to adjust the short-and long-term funding structure;4)Develop diversified businesses and increase corporate capital inflows.The PPP model brings rare opportunities for the development of garden enterprises,but it also brings huge challenges.This article analyzes the financing risks of garden enterprises under the PPP mode and proposes preventive measures.Management has certain application value.