Research On The Asset Securitization Of Internet Consumer Finance

With the rise of Internet finance and the rapid growth of residents' consumption,China's Internet consumer finance industry has become a new field of consumer finance.Since China's Internet consumer finance business piloted in 2010,it has developed rapidly.In addition to the approved establishment of Internet consumer finance companies and e-businesses such as Jingdong and Ali to carry out Internet consumer finance business with their accumulated customer data,traditional financial institutions have also begun to turn to the field of online consumer finance.The rapid development of the industry not only produces a large number of accounts receivable,but also increases the risk of bad debts.Asset securitisation provides helps to mobilise illiquid consumer loans.Therefore,this paper takes the securities of Jingdong Baitiao as an example to analyze the issuing motivation,process and benefit and risk,which has important reference significance.This paper introduces the connotation and operation process of asset securitization,summarizes the definition and classification of Internet consumer finance.And furthermore analyzes the characteristics and current status of Internet consumer finance asset securitization.Then,taking the asset securitization of Jingdong Baitiao as an example,analyzes the motivation and operation process and credit enhancement measures of the first issue of the asset-backed securities as examples to show its operation mechanism.In addition.it analyzes the benefits of issuance from the perspective of original equity holder Jingdong,and analyzes the risks in this process from three aspects:basic assets,transaction structure and participants.Through theoretical and quantitative analysis,the case of this paper finds that:Jingdong Baitiao asset securitization can help reduce financing costs,improve asset liquidity and promote its own strategic development.However,there are default risks of basic assets,transaction structure risks of not all "real sale" of funds and assets confusion,and financial risks of original equity holders are analyzed through Z-value model.Finally,this paper puts forward relevant suggestions and draws enlightening conclusions.In view of the fact that jingdong baitiao asset securitization has been successfully issued for several periods,Internet consumer finance can also focus on risk prevention and learn from this experience.