Research On Credit Assets Securitization Of Finance Company

Automotive Group Finance Company is a product of China’s economic reform and financialreform. At present, to strengthen the centralized management of funds in Automotive Group andimprove efficiency in the use of funds, in the line of depending on and serving for the group, thedomestic financial companies aim to bring the financial service into full play by the intra-groupplatform. Due to the restricted size of their assets and financing channels, at this stage, financialcompanies are increasingly difficult to meet the Group’s development of an enterprise with agrowing demand for funds. But how to make such a securitization of credit assets innovativefinancial instruments in full swing in the auto finance sector, both in terms of technology orpolicy level, are also facing a lot of problems to be solved.In the form of case studies, and referring to the current situation at home and abroad, thispaper briefly introduced the relevant principles of asset securitization and operational processes,summed up the domestic credit asset securitization changes and development status, explainedthe significance of the development of China’s automobile mortgage loan securitization.Focusing on the basic situation and main business of Shanghai Automotive Group Finance Co.,Ltd.(hereinafter referred to as SAIC financial companies) it figures out the operation process ofcredit asset securitization in SAIC financial companies. From four aspects of originatormotivation, Cash flow reimbursement arrangements, the asset pool quality, macro and microlevel of risk and effectiveness of the company, it reveals advantages of credit asset securitizationbusiness, shortcomings of transaction structure design in SAIC financial company and risks thismay cause. Finally, it analyzes the issue of securitization of credit assets SAIC financialcompanies facing, and proposes improvement measures to prevent and mitigate potential risks infinance securitization. This article has some practical values. However, on account of theimmature securitization of credit assets practice, limited data, defective external market,Makeing in the future of its related research needs further improvement.