A Study On China's Preference For The Mode And Model Design Of Film Securitization

With the industrialization of China's film industry and the financial market,film asset securitization,as a symbol of the mature and large-scale operation of film financing in western developed countries,has gradually been put on the agenda.This paper focuses on the feasibility and necessity,types and operation,quantitative model and the transaction construction of China's potential ABS of the film-assets.We had built up a virtual ABS model in the case of "H Company",which is a listed media company in China.Firstly,aiming at the feasibility and necessity of film asset securitization in China,this paper analyses the advantages,disadvantages and trends of the existing financing methods and the development trend,and concludes there was continuity between the two;Also with the gradual improvement of the stability of film assets and the perfection of the market environment,film-asset ABS has been feasible.The urgent need from financiers and investors demonstrate the necessity of the film-asset ABS.Then,this paper explores kinds of the film-asset ABS under different sponsors,financing modes and SPV types,and whose feasible operation schemes.It is concluded that the difficulty of realizing the securitization of film assets increases in turn to the ABS from the cinema,the ABS from the the issuer and the ABS of the producer;The SPT of movie's copyright pledge is easier to exist.At the same time,the specific cash flow model of plate financing and library financing is designed and the implementation difficulties are analyzed.Next,we build a categorized and multiple regression model of the three-stage process from the "first-day film scheduling rate” to the first-day box office and the diffusion afterwards.In the case study of “H-Company's film plan”,a portfolio made of 17 movies was built based on an SPT securitization and so do the internal and external credit enhancement,Monte-carlo experiment on risk control of grades,and issuance arrangements.Overall,this paper roughly puts forward the overall design framework,practical model methods and structural design for China's film asset securitization,which has theoretical and practical significance for promoting the film industry and the cultural industry.