Research On The Development Of Assets Securitization Of Internet Financial Enterprises

Asset securitization refers to the financial activities of converting assets into securities through structural restructuring.Initially,it solved the problem of insufficient liquidity of mortgage loans in the United States at the time,and at the end of the 20 th century,enterprises also financed through asset securitization.Under the current Internet trend,Internet companies are booming,but the sources of funds for Internet companies are mainly shareholder investment or institutional investment.There is a widespread problem of high financing costs and narrow financing channels.Xiaomi's asset-liability ratio has reached a staggering 300% in 2013.Asset securitization is providing solutions for Internet companies to link their own financial pressures,optimize the structure of financial statements,and expand financing channels.According to WIND data,the amount of ABS issued by Internet companies in 2018 has exceeded RMB 190 billion,and nearly20% of the total ABS issued by enterprises in that year.It can be seen that Internet companies have become an important issuer in enterprise ABS.However,unlike traditional ABS,asset securitization of Internet financial enterprises is the result of the integration of credit and enterprise asset securitization.It combines the characteristics of credit ABS and enterprise ABS,so it is more concealed and has greater potential risks.More difficult to regulate.Under the influence of Internet technology and the blind enthusiasm of investors,the disorderly issuance of ABS by mutual gold enterprises may have serious adverse consequences on the overall economic environment and financial markets.Therefore,this paper focuses on the different characteristics of ABS issued by mutual gold companies in terms of basic assets,transaction structure,credit enhancement mechanism and approval process,and the differences between them and traditional ABS,to discuss in detail the practice of asset securitization in mutual financial enterprises.The situation is to provide experience for Internet companies in the same industry to use ABS to improve their financial structure and revitalize existing assets,and also provide reference for the formulation of national laws and regulations.The first part of this paper is a systematic review of the historical evolution of the institutional arrangements related to asset securitization.It is found that the current asset securitization in China still has strict regulatory review,high issuer requirements,lack of relevant legal basis for process operation,and complete transaction structure.Separate risks and other practical problems;secondly,through the collation of manual data,in-depth analysis of the number of ABS overall projects,transaction size,issue body,and issuance cost of mutual financial enterprises since the restart ofChina's asset securitization pilot in 2012,and found mutual Gold enterprise asset securitization has problems such as small total amount,high pricing,main body concentration,and regulatory differentiation.The paper also empirically analyzes the main factors affecting the ABS interest rate of mutual gold enterprises,and obtains the ABS pricing for mutual gold enterprises.The first three factors that have the greatest impact on interest rates are the quality of underlying assets,risk-free interest rates,and bond ratings.Third,through the use of the largest amount of circulation in the industry,the largest amount of ant money is used as a typical case to study its underlying assets,transaction structure,Core elements such as credit enhancement mechanism and pricing,and Based on the empirical analysis of the relevant data,the author discussed the reasons for Ant Financial Company to guarantee the quality of the basic assets,and then studied the success of the case thanks to the reasonable pricing mechanism,the company's own strong financial strength and the background of shareholders,the basic asset pool.The quality and the advantages of risk control also revealed the shortcomings of the risk isolation caused by the lack of credit mechanism and the definition of “real sale” in this case.Finally,based on the above research findings,suggestions for improvement are proposed,such as improving the risk control of big data and perfecting the corresponding laws and regulations.