The Strategy Research On Guangdong Branch Of Bank Of China Coping With Enterprise Asset Securitization

With the reform of China’s financial markets continues to accelerate, the speed offinancial innovation raising quickly, more and more innovative financial productsemerge in financial markets. In the past few years, in addition to the original stocksand bonds which have been widely acknowledged, asset securitization become afinancial innovative product developing more faster in financial market. As assetsecuritization has a comparative advantage in interest rates or other conditions thanthe bank deposit and loans, it promote the original depositors and borrowers ofcommercial banks to achieve financing directly through the capital markets, which isso-called financial disintermediation phenomenon. With the continuous developmentof financial innovation, financial "disintermediation" will become a trend, more andmore enterprises will choose asset securitization to obtain financing through capitalmarkets. Faced with this situation, what commercial banks should do?Firstly, this paper describes the concept of asset securitization, the mainparticipant and the basic theory. Then, we analyze the present situation and thedevelopment prospects of domestic and international asset securitization, we foundthat the scale of asset securitization market of the current domestic and internationalfinancial markets is growing quickly. In particular, China’s asset securitization marketis still in early state of growth, and thus its future prospects are very impressive.Through researching the impact asset securitization has on business of GuangdongBranch of Bank of China, this paper find that asset securitization will not onlyreallocate financial resources between Guangdong Branch of Bank of China andsecurities company, but also would undermine the competitiveness of traditionalbusiness of Guangdong Branch of Bank of China. If we don’t take appropriate copingstrategies about the securitization of corporate assets, market position of GuangdongBranch of Bank of China will be seriously threatened. By the case analysis ofhighway asset securitization program, we concluded that Guangdong Branch of Bankof China should take the initiative to obtain customer’s asset securitization business,which not only prevent the loss of customers, but can increase revenue of bank,maintaining the bank’s market position. Finally, based on the asset securitizationtheory and case studies, this paper proposes that Guangdong Branch of Bank of Chinashould use the different marketing strategies against the different credit customer, andtake appropriate supporting measures to cope with the impact of asset securitizationon bank business.