Research On Asset Securitization Of Ali Small Credit

The guidance of the microcredit company》was issued by People’s Bank of China and China Banking Regulatory Commission at May in 2008. The guidance》 says that private capital is allowed to set up microcredit companies to help with small-sized enterprises. But it also makes many restricts about capital source of the microcredit companies. So, the microcredit companies have to face the lack of capital source. As a result, it is much harder to fund the small-sized enterprises. To solve this problem, the microcredit companies must innovate the financing channels. Making the petty loan securitization is a feasible and propagable way.Asset securitization is a financing tool which makes the money flow be security which people can invest. The money flow is stable and predictable. The asset securitization can add the liquidity of the asset and efficiency of money and helps sponsor get low-cost financing and improve the financial affairs. It also provides investment product to different investors who prefer different risk, earnings and deadline.Alibaba microcredit company and Orient securities asset management company release the asset securitization product — Orient securities asset management and Alibaba specific asset administration plan which is the first in China at July in 2013. It is a very important reference about the petty loan securitization. Analyzing the background of creation, structure of dealing, assets management and risk management of this specific asset administration plan, I find some problems such as bankruptcy isolation, dynamic asset pool and so on.By thinking about the innovation and problems of this specific asset administration plan, I throw out some suggestions about related law system, the new SPV, credit rating, increasing credit, building the underlying assets of petty loan and so on.