A Study On Asset Securitization Of Sichuan Hanhua Microfinance Product

Microfinance companies have played an important role in providing financial services to small and micro enterprises,individual industrial and commercial households,and “agriculture,rural areas and farmers”.However,due to the restrictions imposed by China's financial regulatory agencies,microfinance companies are strictly forbidden to absorb public deposits,and more restrictions have been set up in other financing channels.The lack of loanable funds has become a major obstacle to the survival and development of microfinance companies.Asset securitization has significant utility in improving asset liquidity,capital market financing and improving financial market efficiency.Therefore,it is very suitable for the financing needs of microfinance companies,and it has also led to the rapid development of the assets of China's microfinance companies in recent years.In July 2013,China issued the first microfinance asset securitization product.Since then,microfinance asset securitization products based on the creditor's rights receivable of microfinance companies have emerged.This article takes Sichuan Hanhua Microfinance Co.,Ltd.,which is owned by Hanhua Financial Holdings,as the original beneficiary and Guoxin Securities-Hanhua Microfinance Asset Support Special Plan No.1 issued by Guoxin Securities as the lead underwriter,taking the case of asset securitization Relevant theory,analysis and comment on this case.It is hoped that from the case,it is worthwhile to draw lessons and need to make improvements,and provide theoretical and practical support for the subsequent development of microfinance company asset securitization.This paper mainly analyzes the motivation,basic assets analysis,cash flow analysis,credit enhancement analysis and original equity benefit analysis of the issuance of asset securitization products by Sichuan Yuhua Microfinance Company.It was found that microfinance asset securitization products have a good financing effect for microfinance companies that have not yet reached the financing ceiling.Its low financing costs and convenient financing methods have effectively expanded the scale of microfinance companies.However,because the existing rules and regulations do not allow the microfinance company to achieve asset securitization,it lacks effectiveness in optimizing the financial structure,and there is also a risk of higher concentration of loans.Therefore,this paper argues that asset securitization is a financing method for microfinance companies with comparative advantages.It has a good effect in revitalizing the stock of small loan assets and alleviating the way of relying on the self-owned capital of small loan companies to realize the company's development.On this basis,it is further proposed to provide a small-scale but well-operated microfinance company with a model of collective asset issuance securitization,further improve the asset securitization laws and regulations and strengthen asset securitization under the financial division supervision system.Level market construction and strict control of small loan companies through asset securitization to expand leverage multiples and other policy recommendations.