Case Stduy On Small Loan Asset Securitization Of Alibaba

Asset Securitization is one of the major financial innovations in the latest40years.Since Mortgage-Backed Securities were firstly invented, Asset Securitization, whichis known as “Finance Alchemy”, has now developed into a mature financialtechnology that can securitize a variety of Assets. China began its formal AssetSecuritization in2005, while it has developed not so smoothly.For Micro-credit Companies in China, their development is limited by inability toabsorb deposit and limitation of debt financing. The case researched by this paper--AliLoan1stto5thSpecial Asset Management Plan, is the first Asset-Securitizationevent for Micro-credit companies in China, which is of great importance.This paper reviews theories and researches related to Asset-Securitization，then weintroduce Micro-finance companies. This paper also analyses Securities CompanyAsset Securitization and Asset-Securitization event for Micro-credit Companies inperspective of both investor and funder. As a result, this research finds problemsincluding Lack of liquidity, Unrealized of Bankruptcy Isolation, and Risk of dynamicasset-pool.In order to solve those problems above, this paper provides solutions and advicesfor improving Law rules, Liquidity of Asset-Securitization market and promotingsmall-loan Asset Securitization for Micro-credit Companies.