The Innovation Study On Asset Securitization Under The Background Of Internet Finance

Since 2013, Thanks to the liberalization of a number of policies, the Internet finance and asset securitization have get rapid development. In March 2013, Premier Wen Jiabao encouraged private capital into the financial industry, to promote the acceleration of interest rate mercerization. Therefore, 2013 was regarded as the first year of the Internet finance. As asset securitization pilot further liberalization, asset securitization is gradually becoming a hot spot of China’s financial market.The traditional financing model is based on the commercial bank credit business,and the credit system and offline entity channels are two pillars of bank financing business. However, with the development of the Internet finance, asset securitization business has been increasingly involved in the online virtual financing model, Internet finance based on virtual network platform replaces the traditional entity channels of commercial banks,and the bank credit is replaced by asset credit. The combination of asset securitization and Internet finance has derived various forms of financial innovation, which has a huge impact on the conventional economic pattern.In recent years, the asset securitization project involved in the Internet finance is not too much, theoretical research is also few. Several famous companies such as Alibaba, Jindong and Fenqigou which have more customers and capital have achieved good results. As the outstanding performers in the field of financial innovation, both have a huge development and innovation space. In view of this, based on the successful case of Alibaba Small and Micro Services Company asset securitization project, we will focus on the innovation direction and potential problems in the future.First of all, we will state the meaning and basic principle, analyze of the connotation, characteristics, suitable types of financial products, core principle, basic elements and the general operation flow.Secondly, we will discuss the current situation of the Internet finance in our country, particularly focus on analyzing the present application of asset securitizationin the field of the Internet finance, and finally summarize the necessity of carrying out asset securitization in our country under the background of the Internet finance.Then, taking the Alibaba asset securitization project as an example, we will deeply discuss the trading structure and operation process, analyze the purchasing pattern of underlying asset and the internal and external way of credit enhancement,and discuss the risk and return of different level investors by the way of stress test.Finally summarize corresponding innovation and risk proposals. For example, the underlying asset can expand for small loans or small micro consumer loans, with the method of circulation purchasing and on the big data platform, through the priority/secondary step structure, adopting the unified structure and installment issuance mode, to revitalize the precipitation of credit assets and reduce the cost of the capital. At the same time, we should also pay attention to the construction risk of underlying asset, credit risk and systemic risk.Finally, on the basis of innovation and deficiency of Alibaba asset securitization project, we will put forward proposal for the development of asset securitization project and point out problems that should pay attention to in the future.This paper is mainly supported by basic theory and practical case, with the combination of qualitative and quantitative method, pointing out three innovation development direction of asset securitization such as the small loan company, P2 P industry, small micro consumer finance or the advantage of traditional commercial banks. At the same time, we can not ignore the problems such as regulatory policy,credit rating, assets quality, and products liquidity.