Case Study On Small Loan Asset Securitization Of Jiangxi

Originated from America in 1970 s,Asset-backed securitization(ABS)has become the most important financial innovation over the last half a century.Because of its numerous advantages,typically the great idea of creating a special plan supported by an asset portfolio or cash flows,asset securitization has won its reputation as ‘the alchemy'in the financial industry.Since our first try in the 1990 s,asset securitization has been through pilot project,stagnation,restarting in more than ten gears.Since the year of 2014,asset securitization has a dramatic rise.With the promotion of some financial favor policies,the issue of asset securitization becomes normalization,the scale remains increase,the asset types enriches continually,and the market subjects diversify over the years.And the problems gradually appear as the asset securitization develops.It becomes one of the important tasks theoretically and practically to exploit the financial innovation advantage of the ABS and promote the sound development.As for micro-credit companies,the matter of not being able to take deposits has been a development bottleneck.In addition,the existing financing channels of the micro-finance companies are lack of stability and sustainability.The asset securitization becomes an efficient way to help the micro-finance companies to shake off the problem of financing difficulty.The asset securitization is a new way to optimize financial resource allocation and liquidize the financing mode of the remnant assets.The micro-finance companies around the counting including Jiangxi Province positively try the new pattern of financing since the successful issue of micro-finance asserts securitization domestically in 2013.On August 3rd,in 2015,the first ABS project of micro-finance in Jiangxi Province made the success of stock market listing on Shanghai Stock Exchange.The successful issue of micro-finance assets securitization provided helpful references for the micro-finance companies in Jiangxi Province to use their assets for financing,and is also of great significance for the development of microfinance industry and both the local financial industry in Jiangxi Province.The thesis first goes on the understanding of the “Special Plan” project,which includes the general information of the participates and the basic assets of the pool,the structure of the product grading,and the transaction process.Then we'll make an analysis of the “Special Plan” from the aspects of its true sale,bankruptcy remote,credit enhancement,replacement of the assets,accounting treatment and tax risks.This paper shows the problems of the “Special Plan” in practice and dissects the reasons for existing problems by using the theory methodology,the comparisonmethodology and research methodology.This thesis suggests that there are five reasons for the problems of the “Special Plan”.The unclear ownership of the basis assets;the uncertain legal status of the special plan;the unreasonable way of the internal credit enhancement;the prepayment risk of the underlying assets;the lack of the unified accounting system and tax system.At the end of this thesis,I would like to offer some suggestions on the perfect construction of the “Special Plan” based on the root causes of the problems.Firstly,we should speed up the improvement of the relevant legal system and clarify legal standards for true sale,and at the same time give the projects such as “Special Plan”legal status.Secondly,we need to optimize the way to the credit enhancement in the practice of the special plan process;at the same time flexibly set up the transaction structure to improve financing efficiency.Finally,we should put forward a perfect matching accounting and tax system,set up the accounting standard of asset securitization,standardize the accounting treatment of asset securitization,give a related tax status to the asset securitization and establish relevant tax system.This thesis illustrates the result powerfully and vivid on the basis of normative research and by using the research methods,the comparison methods and the case analysis methods.Compared with the previous academic researches,this thesis focuses on the problem of the “Special Plan” itself.Although the problems existed in practice have some limitations,it exposes some problems that may exist,and find space for improving as for the current situation of the brokerage business asset securitization projects.In addition,most of the previous research focused on improving asset securitization-related policies and systems,while in-depth analysis of such special plans is fewer.However,since 2014,asset securitization has experienced explosive growth,and related problems have become increasingly prominent,so in the summary of the previously issued product in practice,improving the operations of the asset securitization and related policies is particularly important.