Why is the project risk of Zhengxin Investment Group low?

The products of political credit investment are supported by the credit of the first class, and the fund-raising investment is local livelihood projects.

Compared with the people, the project is more convincing for them, and the risk is lower.

Extended Materials. What is Zhengxin Investment Group?

Zhengxin Investment Group, formerly known as SDIC Cinda Group, was established in March 2014, and Zhengxin Investment was headquartered in Beijing. Adhering to the concept of "serving people's livelihood based on political credit", we can tailor customized solutions for political and credit projects in different places, and provide closed-loop services integrating investment, financing, construction, management and withdrawal. As of 2020, the business of the group has been deployed in 27 provinces, municipalities and autonomous regions across the country, and has established political and business relations with more than 380 counties and districts.

Zhengxin Investment Group has been committed to using Zhengxin Finance to better serve the local **. In order to better serve the local government, the group took the lead in establishing the China Institute of Political and Credit Research, the Institute of Political Credit Research of the University of Finance and Economics, and the PPP Research Institute of China University of Political Science and Law, respectively, to provide theoretical support and top-level design support for local political and credit projects from multiple dimensions.

Three research institutes and two forums.

China Institute of Political and Credit Technology is a non-profit public welfare organization jointly established by relevant national institutions, ministries and commissions, scientific research institutes and other leading decision-makers and strategic core units, and is committed to all-round research in the field of first-class and social capital cooperation.

**The Institute of Political and Credit Studies of the University of Finance and Economics was established in Beijing on July 9, 2017 to serve the country's economic and social development, and to provide intellectual support for the accumulation of knowledge in the field of political and credit technology, industry development, system construction, and national governance. **The Institute of Political and Credit Research of the University of Finance and Economics is a university think tank integrating academic research, decision-making consultation, discipline cultivation, talent training, social service and other main functions in the field of political and credit technology, with financial support provided by SDIC Cinda (Beijing) Investment Group, and the University of Finance and Economics provides talent, brand and intellectual support.

Zhang Guilin, Dean of the National Supervision Research Institute of China University of Political Science and Law.

The Institute of Political and Information Technology aims to build a first-class and influential independent think tank in the field of political and information in China, and is committed to building a platform for the integration of industry, university and research in the field of political and information development, so as to provide theoretical support for the academic research of political and credit development and innovation-related disciplines.

"China PPP Investment Forum" is a high-level and high-level China PPP investment and development event jointly participated by relevant ministries and commissions, local governments, financial institutions, academic institutions, well-known experts and scholars, relevant central enterprises and state-owned enterprises, well-known private enterprises and senior leaders.

The first China Political Credit Development Forum was hosted by ** University of Finance and Economics, undertaken by ** Institute of Political Information and Credit, ** University of Finance and Economics, and co-organized by SDIC Cinda Group under the guidance of the State ***, the Ministry of Finance, the People's Bank of China and other ** departments. With the theme of "Returning to the Origin, Innovating and Developing", the forum brought together China's top experts in various fields to delve into the theories and hot issues of China's political and credit development.

**The final destination of platform financing is mainly public infrastructure construction and livelihood projects, such as the renovation of old urban areas and the construction of new urban areas. This kind of project can take years or even decades to complete at every turn, especially for new district construction projects, where the upfront investment is huge.

Therefore, in order to develop and build, we will pay enough attention to the political credit project, and strictly control the risk control to the default control.

From the perspective of the enterprise itself, the assets of Zhengxin Investment Group are relatively large, and the external credit rating is relatively high, so it can be recognized by various financial institutions, so the ability to repay debts is relatively strong. All the data can prove that for the group itself, the project risk is relatively low.

In terms of the nature of political and credit projects, because the funds are used for local development and construction, they are invested in the best and have the best credit as an endorsement, so this aspect is also one of the reasons for the low risk.

Because the political credit investment products are all backed by the best credit, the fund-raising and investment direction is the construction of local livelihood projects.

The group issues different political credit wealth management products according to different local livelihood projects. At present, the fundraising and investment of the product involves large-scale livelihood projects such as shantytown transformation, industrial park road construction, cultural tourism project construction, municipal road network and supporting infrastructure development and construction.

Therefore, relatively speaking, the ** project will have higher credit and lower risk.

Mainly looking at some background information of the project itself, it is not difficult to find that basically the projects of Zhengxin Investment Group are endorsed. For example, if a high-speed rail is to be built in a certain place, it may raise funds from the public through the political credit investment group, and this project must be a project with very low risk and stable returns. Because ** cherishes its credibility very much, if you can't pay it back, it will be quite harmful to the local people.

So generally speaking, there will be no default.

In this case, investors can focus on choosing political credit investment, because political credit investment has the advantages of state-owned assets construction, state-owned asset management, state-owned assets financing, and state-owned assets return. **Credit State-owned enterprise credit Private enterprise credit, simply put, financial products based on **credit are very reliable and safe. The debt will not be cancelled, and the effective default rate is 0.

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They generally reflect the risk level of political credit and finance according to the risk of the lineup. It is usually calculated according to the proportion of the new ** debt balance in the local GDP, debt dependence, the proportion of debt expenditure in fiscal expenditure, the per capita debt ratio and the resident debt ratio.

There are many indicators for risk control, and the above seven indicators are commonly used. In our daily life, there are three types of risk appetite types, and each consumer can be divided into three categories according to the risk appetite, which are risk appetite risk, aversion and risk neutrality.

Risk appetite, as the name suggests, is that they like risk more, and it is not that they like risk, that is, they prefer to use their own money to invest, because of uncertainty, although he can bring risk, but the greater the uncertainty, the higher the income it brings, so the risk-prone consumers, they prefer more and more income, and do not care about the big risk, that is to say, they will not choose to avoid risk. Risk-averse consumers, on the other hand, are reluctant to take risks and prefer a stable income.

Risk-neutral consumers are not extreme, they prefer to calculate according to the actual situation, calculate the income they can get and compare, and then choose the one with the higher return. I think the risk-neutral consumer is more rational because he is not impulsive, he does not choose to take risks because he has a lot of money, and he does not invest because he is afraid of losing money.

In the economic sense, we can draw a graph of these three levels of risk in a plane coordinate system, and we can know that the expected value of risk-averse consumers, that is, their expected wealth is less than the expected return value that wealth can bring. That is, uncertainty can bring more income, so they are willing to bear this uncertainty. Risk-averse consumers are reluctant to bear this uncertainty, but for risk-neutral consumers, they prefer to choose a choice with more income and less risk, or moderate income and moderate risk.

The first point is the best way to minimize the overall risk, you must be sure that you must have something professional to be able to control the risk, and the third point of money control should have a method to implement yourself, so as to achieve a corresponding law.

They will generally observe the market at any time, and then they will also observe the company's recent operation and sales.

They often use professional equipment and corresponding calculation methods to calculate, and there are also professional planners who will control the risk according to the corresponding requirements and standards.

In terms of issuance, the issuance of every ** debt needs to be approved, so the risk is controlled from the source. The local government uses its own credit as an endorsement to raise funds from the public, and will further control the risks when the project is implemented. Zhengxin Finance is a long-term cooperative relationship established in the field of infrastructure and public services.

Therefore, the security and stability of political credit investment is a very important part of the investment, and it is also the key to winning the trust of investors.

It is mainly local risk control measures and tripartite institutions, such as the risk control measures of Zhengxin Investment Group, which have a more professional risk control model to control the overall project. As well as the security of the project itself, in fact, it is the same as doing a project, and a series of measures to prevent and control risks are done in the process.

From the perspective of the political letter itself, the security will naturally be higher. With the government's credit as the backing, the security and yield can be sufficiently guaranteed. Therefore, government credit bonds and local government bonds are the first choice of many investors.

To put it simply, the better the economy, the smaller the probability of local default, and the higher the security.

On the one hand, there will be relatively high-quality projects, such as the construction of 5G, the construction of various highways, etc., which are all projects related to people's livelihood; On the other hand, there will be institutions such as Zhengxin Investment Group to control risks, so it is relatively suitable for ordinary people to try. Nowadays, many financial management models are to lure you with high returns, but investors still have to have a sense of risk and anti-fraud, high returns mean high risks, remember to be cautious!

Compared with other wealth management products, the risk is relatively small, and the yield of political credit wealth management products is generally 6% -9% The main reason is that banks sell wealth management products to charge intermediate fees, so customers will reduce a large part of their income, and the group's business is directly connected to the project side and the capital side, removing the middleman link, so more income is given to investors.

In addition, the financing means of Zhengxin Investment Group are more flexible than that of banks, and the whole process of integrated management can be adopted through a variety of financing channels and financial platforms, which greatly reduces intermediate costs, and the company has a strict 74 risk control system, which has the ability to resolve all kinds of investment risks and financial risks for the invested projects, ensure that every link has risk control checks, and effectively resolve all kinds of financial risks that may be encountered in the process of project implementation.

The first step is to see the authenticity of the project: there are two elements of government credit bonds, one is that the project funds are used for infrastructure or people's livelihood construction; Second, the actual controller of the financing party is the relevant unit of the local State-owned Assets Supervision and Administration Commission or the Finance Bureau.

If the project funds are not used properly, or if the financiers are "not pure", we have to put a question mark on it.

The second step is to look at the area where the project is issued: look at the region mainly to look at two aspects, on the one hand, the local credit, whether there is a default record in the past, such as some places in Guizhou and Gansu often have default events, we have to pay attention.

On the other hand, if we look at the local economy, mainly by looking at the gross output value of GDP and local fiscal revenue over the years, the economically developed eastern region will naturally have more advantages, but areas with brilliant policies such as the Chengdu-Chongqing urban agglomeration are also very valuable for investment.

The third step is to look at the strength of the financier: whether the shareholder** background of the financier is pure, or whether there are other more powerful shareholders (such as CDB or other bank shareholders) as credit enhancement. In addition, it can also be seen whether the financier is qualified to issue bonds, whether it has a bond rating, as well as the size of the bond and the bank credit line, and the overall strength of the financier can also be seen from the evaluation of the financier by a third-party institution.

In addition to looking at the pedigree of the financier, it is also necessary to look at the financial statements of the financier's assets, and look at financial standards such as net assets and debt ratios to judge whether the financial situation of the financier is healthy.

The fourth step is to look at credit enhancement measures: the common credit enhancement measures are the joint and several liability guarantee of the guarantor, and the general guarantor is required to be above AA, and very few municipal projects will appear AAA level. In order to provide more protection for the project, the financing party will also take out a variety of credit enhancement measures such as accounts receivable mortgage, real estate mortgage, land mortgage, and ** approval.

Generally speaking, products with real estate mortgage and land mortgage are relatively safer, but it does not mean that they are unsafe without mortgage.