Research On Risk Management Of SAIC Finance Green Asset Securitization

The development of green bonds is an important part of the country’s continuous promotion of green economy and green financial system construction,and green asset securitization plays an important role in promoting the green bond business to the ground.With the deepening of the concept of green development,China’s new energy automobile industry has ushered in a rapid development stage,and the green asset securitization products of auto finance enterprises have increased year by year.However,with the increase of market share,the problems faced by the securitization of green assets of auto finance enterprises have gradually come to the fore.China’s green asset securitization started late,the policy system is not sound,there is a lack of unified market norms,and auto finance companies lack experience in issuing green asset securitization products,which leads to many risks in the issuance process and is not conducive to the stable development of the green asset securitization market.Therefore,the risk management study of SAIC Finance’s green asset securitization helps enterprises identify the risks in the issuance process of securitized products and prevent them in time,which provides a reference for the development of green asset securitization of auto finance enterprises in China.This paper takes as an example Shanghai Automotive Group Finance Corporation,which issued its first green securitization product in Shanghai in2021.The company’s green securitization basic assets,hedging product transaction structure,and green certification were developed,and the expert survey method and process decomposition method were applied to identify risks in terms of asset restructuring linkage,risk isolation linkage,credit enhancement linkage,securities issuance linkage,and monitoring and management linkage,and a risk indicator evaluation system was established.Control of credit risk can be achieved by improving credit management systems,promoting digitalization,and strengthening monitoring and governance.Control of technology risks can be achieved by raising the threshold for access to qualifications,establishing a logical framework,and improving the green certification system.Control of environmental risks should be achieved by strengthening oversight and emphasizing governance.Based on the green asset securitization risk study of Shanghai Automotive Group Finance Company Limited,the company and related auto finance companies will make appropriate recommendations on green securitization products.