Research Report On Enterprise Asset-Backed Securitization

In 1968, asset securitization was created in the United States, before it was promoted to the world over the past 40 years. Nowadays, asset securitization has gained great development in the international capital markets. It improves the liquidity of the assets, enriches the investment and public financing channels.China began to introduce asset securitization from 1980s. In 1996 the country has achieved the first case of foreign assets of the securitization financing. In 2004 cases of domestic assets securitized product was released. China’s corporate asset securitization product was started from August 2005, and in March 2013, this financial instrument began to operate under supervision in formal.The study for asset securitization first focused on mortgage-backed securities (MBS). In 1980s, with the rise of asset-backed securities (ABS), the research focus into ABS, and cutting-edge research in the field of asset securitization is now mainly collateralized debt obligations (CDO).As the domestic classification of securitization is different, so there are few foreign studies on enterprise asset securitization. And domestic research focused largely on the securitization of credit assets, less for Enterprise Asset Securitization. So this paper focusing on enterprise asset securitization has its practical and theoretical significance.In this paper, we adopt comparative analysis, case studies and empirical analysis methods to study Chinese enterprise asset securitization issues and provide policy recommendations to solve some of the problems of Chinese corporate assets encountered in practice.This paper reviews the current research, enterprise asset securitization basics, and then focuses on the three core issues:underlying assets, a special purpose vehicle (SPV) and credit enhancement. Then through the case study of "Happy Valley specific plan", this paper practical analyzes the mechanisms of securitization. Finally, through the empirical analysis, we study the influence of securitization on the company’s stock performance.