The Practice And Implications Of Receivables Securitization:the Case Of Chinese Firms

In the recent ten years,the asset-backed securitization market in China has gradually developed into a market of a moderate scale,in which the securitization of credit asset and corporate asset are the two primary types.Due to U.S.subprime mortgage crisis,the pace of asset securitization in China once stopped during the period of 2009 to 2011.in the global economic downturn,China didn't survive the crisis unscathed.many productive enterprises are faced with severe challenges,including liquidity squeeze,Capital chain pressure,etc.This put forwards the requirements of the development of securitization from the supply side.Meanwhile,the market-oriented reforms of interest rates narrows the margins that finance institutions gain from traditional products,and they have the incentives to turn to Asset Backed Securities for risk return balance,which put forwards the requirements of the development of securitization from the demand side.the government and Regulators also bolster the development of securitization in considering of Optimizing the allocation of financial resources and realizing the economic transformation and upgrading since the restart of securitization in 2012.In view of the history of the development of securitization in China,the realistic significance of securitization for enterprises in this "new normal"economy and the fact that a great more literatures are focused on the securitization of credit asset,not of corporate asset,this paper chose to analyze from the perspective of firms' asset.And the objects of study are further narrowed down to enterprise accounts receivables.based on literature review and the analysis of the case of Chinese firms,this paper will discuss over the incentives,benefits and models for some special arrangements in the securitization process.