The Effect Of Asset Securitization Financing

Currently,China is going through a “new normal” period when our economy landscape is transforming and facing mounting pressure on the macro level.As a result,the real economy is staggering,which,compounded by the Covid-19 pandemic,has hit almost all sectors hard and at the same time,posed great challenge to them.This is particular true for businesses that find it demanding and priecy to raise money.For them,it is like rubbing salt into the wound.Asset securitization,as a means of financing,has attracted people's attention since its birth,which is called one of the greatest financial innovations since modern times.Its advantages are obvious,helping enterprises to achieve a broader financing channel and financing scale with lower financing costs,and greatly improve the efficiency of the use of funds.In view of its outstanding advantages,asset securitization is popular all over the world,and countries have tried and explored this financing means one after another.But asset securitization led to the subprime crisis in the United States,and even spread the crisis to the world with incalculable economic losses.We should realize that asset securitization is a kind of high risk financial activity,if not regulated scientifically,it is very likely to have a negative impact on enterprises and even the whole society.To understand asset securitization and its financing effect more comprehensively,this paper,based on the theory of cash flow analysis principle,credit enhancement principle and so on,through case study,untangled the issuing process and procedures for phase one JD consumer credit line ABS product,and constructed the evaluation system.It is found that the short-term financing effect is significant,which brings positive wealth effect to the shareholders of the enterprise;the long-term financing effect is not obvious enough,but it also achieves some goals for JD Group,especially take the accounts receivable cash flow early back,which helps JD Group to ease the financing pressure and optimize the financial structure.Overall,JD consumer credit line asset securitization is successful.Finally,this article gives suggestions based on the research conclusions,so that companies can improve the practice of asset securitization,at the same time,create a better environment for asset securitization and achieve better development.In order to promote the further development of asset securitization in China,companies need to learn to make scientific planning,use this financing tool correctly according to their own conditions,and develop the short-term effects of asset securitization.At the same time,through comprehensive management,we must try our best to improve the long-term financing effect of asset securitization.Moreover,relevant units must standardize the development of asset securitization from the perspective of incentives and restrictions,improve relevant laws and regulations,and use financial technology to promote the system.The platform's efficient and transparent operation broadens the participants in asset securitization and allows outstanding SMEs to try this method.In addition,we must promptly eliminate irregularities in the market and purify the asset securitization market to avoid risks.The research in this article aims to help people view the advantages and risks of asset securitization more scientifically,and understand the actual situation of its financing effect,so as to provide reference for more companies with financing needs.After reading a lot of relevant literature,this article finds that although scholars have done a lot of researches on asset securitization,few focus on financing effects.The innovation of this article is to put the perspective of the research on this less-focused aspect,and take the first phase of JD consumer credit line asset securitization as an example,and consider its financing effect in combination with the event research method,financial index method,and Z-value method.However,because JD Group has not yet released its 2019 annual report,it may lead to insufficient understanding of this article,which makes this article's analysis of its financing effects inadequate.