Case Analysis Of CITIC Xiaomi Small Loan Financial Asset Securitization

Asset-Backed Securitization is an effective tool to alleviate the decline of economic growth,slowing down the financial risks of financial institutions and enterprises,increasing the proportion of direct financing and building a multi-level capital market since Chinese economy entered a new normal state.Its essence is an innovative financing tool.It can pack assets that generate stable cash flows in the future,restructuring into new securities to be issued in the financial market through structured design.Asset-Backed Securitization can not only activate assets efficiently,but also broaden the financing path and optimize the balance sheet of enterprises.In recent years,with the increasing development of Internet financial industry,the scale of Internet consumer finance in China is also growing,forming a large number of small scattered financial assets with stable cash flow.For Internet financial enterprises,these huge financial assets occupy most of the company's own capital,which largely restricts the company's development.In addition,the single financing channels and high financing costs have been restricting the development of the Internet consumer finance industry.Therefore,in the face of their own development constraints and increased external competitive pressure,how to activate the company's existing assets,to crack the lack of funds supply is the realistic needs of its development.Therefore,it is very important to explore an effective way of securitization of Internet consumer financial assets.Based on this,this paper takes "CITIC Securities-Xiaomi Small Loan Asset Support Project" as an example for case analysis.This paper combs the research of Internet consumer finance and asset securitization,and then introduces the case to analyze the product structure,product pricing and risk control of millet small loan.Finally,the conclusions and enlightenment are drawn.Suggestions are put forward,such as strengthening high-quality underlying assets,moderately relaxing the entrance threshold of ABS sponsors,scientific pricing of ABS products,and monitoring financial risks in an all-round way.