The current Chinese economy is faced with a month-on-month decline in real estate investment growth and serious overcapacity in traditional industries. On the other hand, it faces the severe task of ensuring a growth rate of "7%."

The serious weakness of the traditional growth pole can no longer contribute much to the achievement of the goal. The market needs new channels and new models to achieve salvation. The "PPP model" that gave birth to a breakthrough in 2014 and became the center of public opinion this year is undoubtedly the most eye-catching at the moment.

industry stars.

What exactly is the PPP model?

What are the entry opportunities in what areas?

How can it be played?

Today we have carefully sorted out several major PPP investment types in the market, and gave a detailed example of a project and the operation mode of an enterprise, so as to see where the investment opportunities are in the PPP market?

1. The dual elements of "public-private cooperation + public products" form the core of the PPP model. The PPP model aims to improve the efficiency of public product supply: public-private cooperation + public products. PPP is the abbreviation of Public-Private-Partnership.

, that is, the public-private partnership model, is a mode of financing public infrastructure projects. The general process is that private enterprises cooperate with the government to participate in and complete the construction of relevant public infrastructure.

There are broad and narrow meanings: PPP in a broad sense is a cooperative relationship established between the government and the private sector to provide public products or services. It can be divided into three categories: franchising, outsourcing leasing and privatization; the well-known BT (BT)

Construction, transfer), BOT (build, operate, transfer), and PFI (private financing) all belong to the scope of PPP in a broad sense; PPP in a narrow sense is similar to franchise projects, but it places more emphasis on the whole-process cooperation of company departments. The typical approach is that the government

It forms a special purpose vehicle (SPV) with the private sector to operate the project. The essence is that the government gives private companies long-term franchise rights and income rights in exchange for infrastructure construction.

Both the government and enterprises are involved in the whole process, and the cooperation between the two parties lasts longer and the information is more symmetrical.

Most of the government-social capital cooperation models currently vigorously promoted in our country fall within the broad scope of PPP.

The core function of the PPP model is to improve the supply efficiency of public products. There are two core elements in the PPP concept, one is public-private cooperation, and the other is public products.

The core purpose of the PPP model is to better provide public products or services, and public products usually have exclusivity characteristics. When the government independently provides public products, since it is both an athlete and a referee,

It will lead to inefficiency in the provision of public goods.

After the private sector is introduced, the professional advantages of the private sector can be fully utilized to improve the efficiency of the supply of public goods.

At the same time, the government must also assume the responsibility of supervising the quality and price of public goods.

The ideal goals of PPP project operation should be: Private sector: obtain long-term, stable, low-risk investment returns by leveraging their professional advantages and improving project operation efficiency; Government departments: by transferring all or part of the operation and income rights,

Achieve the effect of reducing fiscal expenditures, reducing debt burdens, and focusing on public affairs management; Users: Based on professional operations in the private sector and effective government supervision, users will enjoy effective services with higher cost performance.

2. The triple needs of comprehensively deepening reform, innovating financing models and hedging the risk of macroeconomic downturn have started the PPP wave in China. The need to comprehensively deepen reform is that the core of economic system reform is to properly handle the relationship between the government and the market, so that the market can play a decisive role in resource allocation.

and better play the role of government.

The PPP model emphasizes the cooperation between the government and social capital, and its essence is the government purchasing services, which is of great significance to accelerating the transformation of government functions and improving national governance capabilities.

Promoting the cooperation model between government and social capital is an inevitable requirement to promote economic transformation and upgrading and support new urbanization construction; it is an institutional reform to accelerate the transformation of government functions and enhance national governance capabilities; it is an important step to deepen the reform of the fiscal and taxation system and build a modern fiscal system.

important content.

The need to hedge against the risk of macroeconomic downturn my country’s GDP grew by 7.4% in 2014, a new low in 24 years.

The "troika" that drives economic growth, investment, consumption, and exports contributed 48.6%, 51.2%, and 0.2% to economic growth respectively in 2014.

From the perspective of investment, consumption and exports, export growth is slowing down, consumption is relatively stable, and investment has dropped significantly.

Facing the downward pressure on the economy, the government work report has lowered the economic growth target for 2015 to about 7.0%.

Due to the imbalance between supply and demand and the shrinking global economy, it is unrealistic to rely on consumption and exports to stabilize growth. Therefore, investment is still the main means of stabilizing growth in my country at this stage.

From the perspective of the three major sectors that constitute investment, the continued decline in the growth rate of real estate development investment indicates that it is difficult to rebound significantly in the short term, while manufacturing investment has overcapacity due to weak demand, and the probability of an investment rebound in the short term is also very small.

Therefore, currently, to stimulate fixed asset investment, we can only rely on infrastructure investment that the government can drive.

With the growth rate of government fiscal revenue declining and debt flexibility limited, the PPP model is expected to drive extensive participation of social funds in basic investment, thereby hedging the risk of macroeconomic downturn.