Case Analysis Of The Rent-instalment Asset Securitization Of Ziroom Co.,Ltd.

With the continuous expansion of leasing demand in China,the existing housing stock in the leasing market cannot fully meet the residential needs of residents,developing the housing rental market represented by long-term rental apartments has become an important measures to reform housing system,resolve the contradiction between supply and demand in the rental market,and meet the living needs of urban residents.As we all know,long-term rental apartments are a capital-intensive industry,which requires a large amount of investment in the early stage of development,and generally there are problems of low profit margins,slow capital turnover and long investment returns.Therefore,how to raise funds and seize the opportunity to promote their development becomes a problem that operators of long-term rental apartments need to solve urgently.As a unique financial innovation tool,asset securitization has the natural advantages of realizing future assets ahead of time,lower financing costs,and high financing efficiency.It can help companies solve the problem of financing difficulties,which coincides with the demand of long-term rental apartments.In recent years,more and more long-term rental apartment operators have tried financial innovation and issued different types of long-term rental apartment asset securitization products,which has aroused the attention of many enterprises and investors.This article selects the special plan launched by Ziroom as the research object,which aims to analyze the process,reasons and effects of Ziroom's issuance of asset securitization,and seek its successful experience in asset securitization.It is hoped to provide a reference for the subsequent implementation of similar asset securitization in long-term rental apartment companies.On the basis of summarizing the research results of asset securitization at home and abroad,this paper uses a combination of theoretical research and case analysis to analyze the related issues of long-term apartment companies using asset securitization financing from multiple perspectives.This article's research content on the asset securitization of Ziroom Company mainly includes the following five parts: The first part is an introduction,which mainly introduces the research background and significance of the article,and sorts out the domestic and foreign research status of asset securitization in its motivation,model and effect.Then,it narrates the research ideas and methods of the paper,and finally summarizes the basic writing framework of the whole paper.The second part is an overview of the related theories of rented installment asset securitization.First,the definition,characteristics and process of asset securitization are discussed.Then the motivation and effect of asset securitization are explained.Finally,the basic operating principles of asset securitization are introduced.Make theoretical preparations for subsequent case analysis.The third part is the case introduction part.This part starts from the basic situation of Ziroom Company,and separately introduces the construction of the special plan asset pool,the setting of special purpose trusts,credit enhancement measures and the follow-up operation of the special plan.Besides,it also summarizes four basic characteristics of the special plan,which are the basic assets that can generate stable cash flow,double SPV model,revolving loan structure,and various credit enhancement measures.The fourth part is the main part of this article.Based on the collected relevant data,this part analyzes the internal and external motivations and effects of the company's asset securitization project from multiple perspectives.The fifth part is the research conclusion and inspiration.Through research,this paper finds that Ziroom company issued asset securitization because of being stimulated by the leasing market and various favorable policies,and because the company urgently needed to obtain funds for business expansion and increase market share to compete for development opportunities.In terms of effects,the current asset securitization has improved the overall performance of the company to a certain extent,and the company's profitability and development capabilities have improved to a certain extent after issuing securities.Through this securities issuance,Ziroom Company not only rapidly increased the number of houses under management and increased market share,but also gained a good reputation in the capital market,laying a good foundation for the next financing.Therefore,this article believes that the asset securitization has brought a very positive impact on the development of Ziroom.In addition,through the study of this case,this article draws the following enlightenment: first,the rational use of asset securitization to solve the financing dilemma of enterprises;second,the issue of asset securitization must choose high-quality basic assets;third,the issue of asset securitization should pay attention to the design of the product transaction structure.Fourth,the issue of asset securitization should choose appropriate credit enhancement measures to improve product grade.