Microfinance Companies To Explore Innovative Ways Of Financing

Asset securitization is one of the most important financial innovations of the past forty years. Starting from mortgage-backed securities, asset securitization has developed into a large number of types of assets can be securitized financial technology nowadays, and it’s called "the art of Alchemy". Since 2005, China officially piloted an asset securitization, but ten years of development is not ideal.For microcredit company, which can not be restricted deposits and debt financing problems, limiting it’s development. The paper was on the study of the case "ABC microfinance asset-backed special programs NO.1", found the issue of microcredit company in the process of asset securitization and resolving them. For the experience of microcredit company asset securitization financing to improve domestic asset securitization products structure and development have a certain significance.Firstly, the paper introduced the background, purpose, content and significance as well as the related theories are described.Then, the paper was in a setting in ABC microfinance company history and current situation of development, and departure from the company’s strategic level, through SWOT analysis of the advantages and disadvantages of tool internal and external environment, pointed out the company’s strategy, in the company’s strategy to derive business strategy, financial strategy, financial system together with DuPont analysis demonstrates the necessity the ABC Microcredit Company was asset securitization. At the same time, the paper used a comparative demonstration method, the current asset securitization incentives, in-depth analysis of the regulatory environment, the quality of the company’s assets, and asset securitization to optimize the situation and after the financial strength of the group by the objective conditions of the letter, pointed out the ABC Microcredit Company with asset securitization innovative ways of financing feasibility.On this basis, the paper introduced the ABC Microcredit Company asset securitization design features, the factors considered in the release process, selection and other issues in innovative ways and solutions.Finally, the paper summarized the experience and the ABC Microcredit Company asset securitization issue, and noted that the future of innovation through further asset securitization distribution methods, will give microcredit company to enhance the overall competitiveness of the industry, reduce non-performing loan ratio, rich market investment products to provide new ways and methods, while market regulation and policies to promote and made some specific recommendations.