Study On The Asset Securitization Of The State-owned Enterprise Group

In the financial field, asset securitization is the financial innovation and financial instruments which is of greatest significance and develops the most rapidly during the past 40 years. Judging from the operation process and the goal of asset securitization, it is a process of financing which can collect the cash (lack fluidity but have the future revenue flow) and transform it to the negotiable securities which can be sold and circulated in the financial market through the structure reorganization.The need of financing of the enterprise group, the need of full development of financial market, as well as the need of investment of the investors. It's just these three areas of need that promote the birth of asset securitization. It is financial derivatives which can changes the less-fluid asset to the fluid ones. In rapid economic development of China, the background of the asset securitization's promotion and application also stems from this.First of all, this paper aims at discovering the asset securitization's operation pattern which is suitable to the state-owned business group through researching its economic connotation in combination with the its developing process. It uses asset securitization (financial instruments) to broaden the financing cannels of enterprise group, with a proposal of separating the auxiliary industry, causes state-owned business's development and reform in a healthy, effective and stable environment, and thus be able to strengthen and expand state-owned business group and increase the market competitiveness of the state-owned business group.Secondly, this paper analyses the characteristics of the cash flow caused by the transaction within the enterprise group and points out the possible modes of asset securitization. There exist the massive interior affiliated transactions within the enterprise group. There is a close relationship between the parent company and the subsidiary company as well as the subsidiaries and affiliates themselves. They can form the long-term stability of the account receivables. The internal cash flow of the enterprise group could become the basis of high-quality assets so as to meet the condition of asset securitization. We may achieve the purpose of financing if we carry on processing to these different types of account receivable. We can propose the price quantitative analysis model of the asset-supported negotiable securities according to the cash flow pattern generated from the business group's interior transaction. Thirdly, according to the policy of "main auxiliary separation, capable main body", design a proposal of financing and separating the auxiliary industry based on assets securitization. It is very difficult for the enterprise group to put out the limited fund to support the auxiliary industry development from the overall development strategy which takes strengthening and expanding its principle industry as the goal. Therefore the auxiliary industry has to seek for a way of separating and system-reforming as a main method to develop. The country must undertake certain remanufacture cost when auxiliary industry remanufactures and auxiliary industry can also produce the stable cash flow for the principal work necessary product. Considering these factors, when we carries on asset securitization of auxiliary industry, we can issue negotiable securities based on the cash flow produced by the principal work support's product or the service, and indirectly support auxiliary industry through securities credit enhancement carried out by enterprise group. These kind of negotiable securities are not only to finance merely, but also with a consideration of the reform of auxiliary industry and the shareholding reform. We can achieve auxiliary industry's financing and remanufacture goal through releasing the negotiable securities, using the outside capital to improve the auxiliary industry product mix, gradually getting rid of the dependence of the principal work, and introducing the exterior investors. Hereby we carry out a qualitative analysis on how to design an asset-backed security with cum rights.Finally we bring out a suggestion about the way of participation of state-owned enterprise group pursuant to the working principle of special purpose vehicle (SPV) in assets securitization. Since the special purpose vehicle (SPV) is the core in working process of assets securitization, we analyze the form and function of SPV, combining the state-owned enterprise group's purpose of being involving in SPV, and then get the conclusion as following: where the asset-backed securities are issued for financing based on quality receivables of enterprise group, the group could directly participate in as a shareholder of SPV to lower the cost of financing; where the purpose is auxiliary industry reforming, the enterprise group could indirectly support auxiliary industry using credit enhancement of asset-backed securities, or support it though joining the auxiliary industry reforming fund which is dominated by government.