On Real Estate Enterprise Asset-backed Securities Financing

Real estate enterprises play a pillar role in China's economic development and are also related to people's lives.The real estate industry has a large demand for funds and takes a long time.In order to solve the funding problem,enterprises must finance the outside world through various financing methods.At present,China's real estate enterprise financing mainly relies on bank loans,supplemented by equity financing and debt financing.However,in recent years,with the increase of national macro-control and the renewal and improvement of the policy system,the threshold of bank loans has been continuously improved,and listed financing and distribution companies.The financing cost of debt is high and requires more,and the traditional financing methods of real estate enterprises are difficult to sustain.At this point,the emergence of asset securitization has opened up new financing channels for real estate companies.Asset-backed securities will sell the stock assets that are less liquid and cannot be realized in time to the investors in the form of securities issuance,and the promoters will be financed accordingly.This model not only has lower financing costs than traditional financing models,but also has less restrictions.Therefore,Asset-backed securities has opened up a new model for real estate enterprises to raise capital in the capital market with its unique advantages,effectively revitalizing existing assets and reducing corporate financing cost.In order to understand more clearly the current situation of China's real estate enterprise financing and Asset-backed securities financing methods,this paper selects representative enterprises in the industry for analysis,in order to provide suggestions and references for the real estate industry financing methods.This paper takes the case analysis as the research method and selects the special plan for the purchase of the final assets of Rise Sun Real Estate Development Co.,Ltd.for analysis.Firstly,it introduces the theoretical basis of Asset-backed securities,mainly related to the principle of financial innovation,the principle of bankruptcy isolation,the principle of expected income and the principle of credit enhancement.Secondly,it analyzes the overall status of Asset-backed securities in China's real estate industry,mainly from the development of the industry.The problem and the Assetbacked securities financing model are studied from two perspectives.The analysis results show that the Asset-backed securities of China's real estate enterprises mainly has the problem that the scale of financing continues to rise,the dependence of single financing channels is large,and the financing methods are restricted by policies and regulations.At the same time,the Asset-backed securities mode of real estate enterprises in China is mainly based on basic assets.Existing creditor securitization,real estate trust investment funds and income security securitization;then,analyze the motivations and operational processes of the case company's purchase of final assets support special plans.From the analysis of public data of case companies,the motivations for enterprises to adopt Asset-backed securities financing mainly include the rising asset-liability ratio,the year-on-year decline of financial indicators,the large capital demand and policy restrictions and market orientation of industrial transformation.At the same time,through the analysis of the operation process of the securitization of the receivables of the case company,it is possible to understand the relationship between the participating entities.Finally,by analyzing the effect of the case securitization of the company's purchase of receivables,it draws inspiration.The analysis found that the Asset-backed securities financing method can revitalize the existing assets,improve the financial status of the enterprise;reduce the asset-liability ratio,adjust the capital structure of the enterprise;realize off-balance sheet financing,optimize the balance sheet;broaden the financing channels,innovate the financing method,and believe that the enterprise is proceeding When securitizing assets,it is necessary to use off-balance sheet financing reasonably,and timely disclose corporate information and innovative financing tools while taking into account financing costs.Through the study of the case,this paper believes that real estate enterprises can not only expand the financing channels of enterprises,innovate financing methods,but also revitalize existing assets and improve corporate statements through financing methods of Asset-backed securities.The innovation of this paper lies in the motivation and effect analysis of the case company financing model,which provides a model for the real estate enterprises to provide financing for securitization of house purchase receivables.