Research On The Motivation And Economic Consequences Of Asset Securitization

In March 2017,Premier Li clearly stated in the government work report that we should actively and steadily de-leverage.The specific measures he proposed mainly included "promoting enterprises to revitalize existing assets and actively promoting asset securitization",which fully reflects the importance our government attaches to asset securitization.As one of the most important financial innovation of the 20th century,asset securitization can revitalize corporate stock assets through its special "True Sale" mode,improve corporate liquidity and promote the adjustment of corporate asset-liability structure.On the other hand,assets securitization can reduce the risk of assets through the assets reorganization,risk isolation and credit enhancement.In addition,the strategic significance of asset securitization in the implementation process is also becoming increasingly prominent.It can be predicted that with the support of policies,asset securitization will develop more rapidly in China.Rainbow Department Store is one of the famous enterprises in our country,facing the needs of its own strategic upgrading and the demand of the financing structure optimization,Rainbow Department Store selected to carry out the asset securitization together with China Merchants Securities and other various participants.The project is the first REITs projects in the domestic market.It is of great significance to the case study of asset securitization in China.This paper focuses on the theme of "asset securitization" and takes Rainbow Department Store as the research object to analyze its asset securitization in 2015.We try to find the underlying reasons behind the implementation of asset securitization and the economic consequences of the asset securitization.In this paper,event research method and financial index analysis method are selected to study the market performance and financial performance of asset securitization respectively.The research results show that the main reason for asset securitization is due to strategy consideration,In the case of the continued sluggishness of the entity retail industry,Rainbow Department Store actively promote "light assets expansion" + "new retail" strategy.Asset securitization can bring huge capital inflows and revitalize the company's stock assets,help the implementation of the strategy of Rainbow Department Store.At the same time,due to the high debt ratio of capital,single financing channel and unreasonable financing structure,the introduction of asset securitization can help enterprises to expand financing channels and optimize financing structure.In terms of the economic consequences of asset securitization,after the announcement of the implementation of securitization,Rainbow Department Store has a relatively high market performance both in the short-term and long-term.In addition,after the implementation of securitization,its current debt repayment index,current solvency and profitability were significantly improved.In the long run,In the long run,the financial guarantee provided by asset securitization has greatly contributed to the strategic promotion of Rainbow Department Store.Because of the positive impact of asset securitization on' the strategic transformation,Rainbow Department Store begins to show the growth profitability of the adverse industrial.Finally,as to how to maximize the role of asset securitization in the real economy,this paper also gives some suggestions:enterprises should pay attention to the strategic significance of asset securitization.At the same time,the transaction structure should be improved in the process of securitization to minimize the risk of asset securitization.Combined with the current domestic and international asset securitization related theories,this paper analyzes the motivation and economic consequences of asset securitization from a strategic perspective,and constructs a relatively complete economic consequence evaluation system.The financial index method and event research method are used to comprehensively evaluate the financial performance,short-term market performance and long-term market performance of asset securitization.This provides practical guidance for the subsequent asset securitization of enterprises.