Case Study On Xiaomi Microfinance Asset Securitization

In recent years,Internet consumer finance companies have turned their eyes to the new financing channel of asset-backed securities(ABS).The microfinance company is a major carrier for mutual financial companies to issue ABS products,with consumer loan credits as the underlying assets and special assets.Plan to conduct securities trading.With the increasing demand for loans,the scale of microfinance companies has continued to expand,and the difficulty of financing has seriously restricted its sustainable development.Through the issuance of ABS products,it has revitalized the stock assets and broadened the financing channels.It is an innovative move for the financing of small Internet lending companies.By reading the literature on ABS and microfinance companies,and combining the development status of consumer finance,we chose the “CITIC Securities-Xiaomi Small Loan No.1 Asset Support Special Plan” issued by Xiaomi Small Loan as the case study object.This paper first introduces the operation process,transaction structure and credit enhancement mode of Xiaomi Small Loan ABS.Secondly,it analyzes the motivation and effect of Xiaomi small loan's ABS based on the financial data and external data of Xiaomi Small Loan.At the same time,it also predicts the credit risk of the underlying assets,the liquidity risk of the asset pool and the redemption risk in the process of securitization.Finally,the case study of Xiaomi Small Loan ABS is issued to other network micro-finance companies.ABS products have certain reference significance.The securitization of Xiaomi Small Loan assets has reduced the financing costs of enterprises,brought new ideas to the financing of enterprises,and enhanced the company's reputation and image.It is an innovative move in the financial industry.