Case Study On Accounts Receivable Backed Securitization Of JD.com Consumer Credit Line

Assets Backed Securitization(ABS) appeared in 1970 s. As one of the most important financial innovation, it has experienced explosive growth and became one of the three main methods of financing, the other two are equity financing and debt financing. The development of ABS in China go towards prosperity in the twists and turns. According to the 2015 development of ABS report issued by the clearing company, the amount of total issued ABS products was 1386, aggregate amount was 603.24 billion yuan, increasing 84% compared with 2014.The rapid development of the Internet has changed people’s lifestyle. From dining and entertainment, to the defense industry, the Internet has been integrated into every corner of the Chinese economy, trade and industry. It also brings opportunities and challenges for the development of the Internet industry. How to obtain low cost funds effectively is the problem which Internet companies face. Therefore, combining characteristics of ABS and domestic status of ABS in China, ABS is a beneficial way for Internet companies to get financing and reduce the cost of financing.Main content of this article is to analyze the Accounts Receivable Backed Securitization(ARBS) of JD.com Consumer Credit Line, combining theory and practice. Through analysis and evaluation of ARBS of JD.com Consumer Credit Line, the article draw relevant conclusions and enlightenment.To speak of the structure of this article, first is systematic summary of the Accounts Receivable Backed Securitization(ARBS) of JD.com Consumer Credit Line. Secondly, through the description of the ABS progress of JD.com consume credit line, the article analyses and evaluates the motivation, risk and cost-benefit of this case. After that, on the basis of the above analysis, the article evaluates feasibility of financing though ABS in Internet industry and makes corresponding recommendations. The last part is the summary and enlightenment.