Research on Construction Financing of China High-speed Railway
|School||Beijing Jiaotong University|
|Keywords||High-speed railway Project financing Asset-backed securitization|
Railway transportation is the critical component of domestic economic infrastructure, the link between the production and the consumption, and plays an important role in the integrated transportation system. No doubt the railway system has witnessed significant progress since the establishment of new China, especially since the start of economic reform and adoption of open policy. However, on one hand, the railway system can’t provide enough capacity; on the other hand, the mixed running of freight and passenger transportation on the same railway lines severely limits the efficient use of the transportation capacity. Therefore, the railway transportation becomes the bottleneck and lags far behind the quick-paced social and economic development. The construction of high-speed railway and division of freight and passenger transportation becomes one of the alternatives to change the current dilemma .In a word, high-speed railway systems are both technology-intensive and capital-demanding with long duration of building cycle. How to attract the private capital through free market financing to participate the construction of high-speed railway system will significantly affect whether we can smoothly build the high-speed railway infrastructure.This paper first summarizes the current situation of high-speed railway industry in the world and necessity of building high-speed railway system in China, then points out that the lack of capital is the critical obstacle to overcome. Secondly, this paper analyzes the current financial mechanism and methods in China and how the financing is accomplished in foreign countries. Specially this paper focuses on financing through assets-based securities, and concludes that this is a better financing model. Lastly, this paper gives a proposal on how to use securities to finance the first high-speed railway in China - JINGHU high-speed railway.