Application Analysis Of Asset Securitization In Financing Of Auto Finance Companies

After 40 years of reform and opening up,China's national consumption capacity has increased significantly,obviously,the automobile manufacturing industry is one of the beneficiaries,and the scale of the automobile credit market is also developing.This is inseparable from the finance and product innovation provided by auto finance companies.With the help of the aspect,further promoting the development of auto finance companies will make a very positive effect on the development of the entire automotive industry.However,there is still a big gap between China's auto finance companies and the mature auto finance market in Europe and America.It is still unable to fully meet market demand.Because auto finance companies still belong to the financial category of enterprise groups,although the registered capital is relatively high,the method of adding additional registered capital in the late stage is far from meeting the market demand.Therefore,auto financing companies are looking for other financing channels is vital that to solve the financing dilemma and break through developing bottlenecks.Asset securitization is a financial tool suitable for auto financing companies' credit asset.It can be used to improve the financial structure of enterprises and solve corporate financing constraints because it can enhance the characteristics of asset liquidity and transfer internal risks.Therefore,it is of great significance to study the application of asset securitization in auto finance companies.This paper studies the development characteristics of domestic and foreign auto finance companies,the concepts of ABS,operation modes,and existing problems,and analyze the specific cases of personal auto asset mortgage-backed securities issued by GAC Auto Finance – Huitong 2017.Based on the experience of dealing with relevant problems at abroad,this paper draws some suggestions on how to improve the loan examination,improve the quality of capital pool and maintain sharp vigilance of systemic risks in the process of ABS projects.