Cause And Effect Analysis Of Assets And Securitization Of "JD.com Baitiao" Accounts Receivable

Since the issuance of the first asset-backed securities in 2005,after more than ten years of development,China's asset-backed securities projects have entered a rapid development stage from the pilot phase.As of the first half of 2017,a total of 488.41 billion RMB of asset-backed securities were issued nationwide,an increase of 68.87% over the same period of last year.The market stock was 1.46 trillion yuan,an increase of 66.48% over the same period of last year.In the increasingly development of asset securitization today,Internet companies have begun to implement asset securitization project.The purpose of this paper is to analyze the assets securitization project of “JD.com Baitiao” Accounts Receivable through a combined method of theoretical analysis and case analysis,with a view to reference the enterprises that will implement asset securitization projects in the future.Before analyzes the asset securitization project of “JD.com Baitiao” account receivable,this paper introduces the definition,classification and characteristics of asset securitization as well as the general motivation,effect and theoretical basis for the implementation of asset securitization.Asset securitization refers to the process of transforming the assets lacking liquidity but having a predictable and stable cash flow into a bond-type securities that can be sold and circulated in financial markets through structural reorganization and financing.Generally speaking,asset securitization can be carried out according to different regulators and whether it is carried out within the territory of a country and whether the distribution of cash flows should be reorganized before classification.Asset securitization has the following characteristics:(1)Asset securitization relies mainly on the cash flow generated from the underlying assets,and has little to do with the assets and liabilities of the original equity holders.(2)Asset securitization is a kind of structured financing,which can be used for risk isolation by setting up SPV to realize "real sale".(3)As the asset securitization product design has credit enhancement mechanism at the time,lower cost financing can be obtained compared with other financing methods.The general motivation for the implementation of asset securitization include: opening up new financing channels for enterprises and reducing financing costs;optimizing the financial statements of enterprises so as to realize effective arbitrage for financial institutions.The general effects of the implementation of asset securitization include: improving the management efficiency of enterprises by enhancing the liquidity of assets and optimizing the capital structure of enterprises through low-cost financing of asset securitization.The principles supporting asset securitization include: risk isolation principle,portfolio theory,future cash flow theory,credit division principle.After doing the theoretical foreshadowing,this article analyzes the asset securitization project of the account receivable of “JD.com Baitiao” as an example.First of all,this article analyzes the implementation process and characteristics of the project of asset securitization.The analysis shows that the asset securitization project has the following characteristics: using internet consumer receivables as the basis assets,using self-owned big data credit reporting system to guarantee the quality of the pooling assets,and cyclically purchasing the assets to maintain the preset size of the pool,dividing the asset-backed securities by different risk returns,using internal credit guarantee asset-backed securities repayment.Then,this article analyzes the reasons why JD.com implement the securitization from the aspects of cost reduction,gain having and risk management.The motivation to reduce costs can be embodied as: to reduce financing costs,reduce the cost of information disclosure,reduce accounts receivable management costs,reduce operating costs.The motivation for gaining income can be further embodied as: acquiring the spread income of borrowing and lending of funds,obtaining excess returns of self-sustaining subordinated bonds,gaining gains in long-term development and gaining indirect benefits from high financial performance.The motivation for managing risk can be embodied as managing the risk of bad debt of accounts receivable and the risk of period limit of receivables of “JD.com Baitiao”.Finally,this paper analyzes the effects of the implementation of “JD.com Baitiao” Accounts Receivable Securitization Project on promoters,investors and capital markets.The effects of the promoters are as follows: reducing the dependence of “JD.com Baitiao” Accounts Receivable on suppliers,promoting the establishment of Baitiao brand and laying a foundation for the establishment of "JD.com ABS Cloud Platform".After all the above analysis,this article gives the summary and enlightenment of this case.Through the analysis of the case,this paper draws the following conclusions: JD.com own big data system has promoted the success of “JD.com Baitiao” Accounts Receivable asset securitization;the improvement of the internal supply chain in JD.com has reduced the bad debt rate of accounts receivable;the “JD.com Baitiao” Accounts Receivable assets Securitization has promoted the development of Internet consumer credit.In addition,the following enlightenments have been obtained: The precondition for asset securitization success is high-quality basic assets;and the gradual development of asset securitization business is an increasingly perfect embodiment of China's capital market.