China SEMs Credit Asset Securitization Financing Model Analyze

Since China carried out the reform and open policy, especially in the new 21 th century, the rapid growing of small and medium-sized enterprises(SEMs) has been an important part in promoting the development of national economy, building the socialist market economic system and being an important side for economic and social stability. Now for the “New Normal” economy in China, SMEs play a significant role in maintaining the level of economic growth, relieving employment pressure and achieving innovation-driven society. However, SMEs subject to the constraints of the financing problem of congenitally deficiency, which has confined the rapid development of SMEs,and which is a major obstacle to the sustainable and healthy development of the whole society in China.During recent years, asset securitization is growing to a new way to solve the problem of financing of SMEs. Some practices have succeeded in foreign countries, and also China has a pilot – Zhe yuan 2008-1 SMEs loan asset backed security, which shows that carrying out SMEs loan asset securitization from commercial banks can disperse the risk, while SMEs can obtain more loans and reduce the cost of financing. However, comparing with those loans for large amount of business, this SMEs loans are non-superiority assets which propose high demand for the level of risk control because of the diversifications of assets and complicated risk structure.Based on the above analysis, this paper did some research as follows. First, from the perspective of risk control of commercial banks, draw lessons from the hierarchical structure of synthetic CDO and credit assets in the form of the sale, we construct a SMEs credit asset securitization financing transaction model based on multi bank loan pool. Second, design a new type of SMEs credit asset securitization product, then make cash flow analysis of the product. Last, case analysis and empirically test of the Zhe yuan 2008-1 SMEs loan asset backed security.