Research On Enterprise Income Right Asset Securitization

Since 2018,financial defaults have been raging,exposing the current situation of corporate financing difficulties.At the same time,in the context of de-leveraging and economic downturn,enterprises have repeatedly hit the wall in official indirect financing channels such as bank lending,and there are still high barriers to direct financing channels such as bond issuance,so they have to resort to non-standard,private Lending,P2 P and other financing channels,but its risk and investment costs are also increasing,resulting in a decline in corporate bond net financing to a historical low.For the Enterprises with income rights,because they will continue to have cash inflows in the later period,so the funds have the characteristics of large demand,long cycle and high risk in the early stage,and their financing ability is related to the survival of the enterprise.However,the traditional financing methods of enterprises are mainly long-term and short-term loans,corporate bonds,and public offerings.With the impact of de-capacity,restructuring and economic downturn,capital turnover is difficult,and traditional financing methods are difficult to meet the funding needs.Enterprises' development,what is missing is not the project,but the money.Lack of money is the main contradiction that currently hinders the release of economic benefits.Therefore,it is necessary to innovate the financial system and encourage financial institutions to participate in corporate investment and financing,thereby releasing the vitality of enterprises,ensuring economic restructuring,and promoting industrial transformation and upgrading.In 2013,the China Securities Regulatory Commission promulgated the“Regulations on the Management of Asset Backed Securitizationof Securities Companies”,which made the company's ABS(asset backed securitization)become a regular business.The development of asset backed securitization has brought new and powerful impetus to the financial industry.At the same time,it has brought great difficulties to financial supervision.ABS has accelerated the operation of funds and is a rare refinancing tool in the development of enterprises.In addition,China's corporate financing channels are limited,and ABS has expanded the financing channels of enterprises to a certain extent,which is ultimately beneficial to the development of the real economy.This paper first summarizes the existing research basis based on the existing literature,and then introduces the current situation of China's ABS financinginstruments,and expounds the motivation of the enterprises with income rights asset project to select ABS as a financing tool.Then,it discusses the advantages of ABS in terms of capital cost,risk isolation,corporate wealth and the asset liquidity of enterprises with income rights asset projects.At the same time,the article uses the analytic hierarchy process to establish a risk indicator model to analyze the risk of the enterprise with income right asset project in the process of ABS.Finally,China Fortune Land Development Co.,Ltd(CFLD)issues the new urbanization PPP project in Gu'an Industrial Park,which is an example of heating income rights ABS products.Through the establishment of ABS capital cost model,analysis of financial data and analysis of cash flow,the advantages and risks of China Fortune Land Development Co.,Ltd(CFLD)using ABS tools for financing are discussed.The theoretical research and case analysis of this paper effectively show that ABS is an innovative financing tool for enterprise with income rights asset projects,which has certain advantages and certain risks.On the one hand,this financing method is more comparative than traditional financing instruments.To a certain extent,it has the effect of reducing the cost of financing and the isolation of risks.But on the other hand,in the process of ABS,companies may face various types of systemic and non-systematic risks.Therefore,enterprises should take full advantage of the advantages brought by ABS financing tools and actively carry out corresponding risk management work.