Research On Asset Securitization Of Cinemas' Box Office Revenues

With the growth of GDP and residents' consumption level,the demand for the film has been increasing rapidly.By the end of 2016,China's box office revenue has been the second in the world,and the film industry has entered a rapid development cycle.With the growth of investment expenditure for Cinema construction,the Funding gap is expanding rapidly.Asset securitization as a new financing tool has been approved by the regulatory and the capital market.More and more companies begin to use asset securitization financing.Asset securitization of cinemas' box office revenues is important and necessary.There are four companies in the asset securitization of cinemas' box office revenues up to now.The definition of underlying asset,transaction structure credit enhancement and risk management are key points in this paper.So far the underlying assets have been beneficial right of trust in the whole asset securitization of cinemas' box office revenues.They all use the same transaction structure-asset management plan and trust as double SPVs,using internal and external credit enhancements meanwhile.This paper has made deeply research on three asset securitizations of cinemas' box office revenues,summarizing the key points and difficulties-cinemas' box office revenues are expectant and uncertain.Through the trust and asset management plan,the underlying asset will be defined.With the credit enhancements,film companies can be financed.Contrasting asset securitization cases in air transport industry and tourisms,this paper has researched the features of asset securitization of cinemas' box office revenues.Keeping watch of the risk of the trust structure and trying new models in inter-bank market are targeted recommendations.Then the asset securitizations of cinemas' box office revenues will provide some reference and operational model for other film companies and the companies with the similar revenues.