Case Study On Securitization Of "JD Baitiao"

In the modes of operation of the Internet financial diversification,the Internet financial services model for e-commerce companies to participate not only in the breadth and depth but also have impact on the society that is worth a lot of attention.The website belongs to the e-commerce enterprises which provide the consumer credit for their products come into being accounts receivable securitization,which is mainly the package of assets of stable payment by user get return through the SPV(special purpose vehicle)in advance.The model which closely linked internet finance and online retail business of shopping website is an innovation of business model that change the sales incomes can only come from the consumers.This innovative model applied to China's huge network groups and improves the e-commerce business financing difficulties,which is a very effective and low cost way to solve the problem of high cost for e-commerce companies financing,and promote the sustainable development for e-commerce companies.“JD Baitiao”—a credit service provided by the company's e-commerce platform for consumers have goods before payment,regarded as Jingdong's internet consumer financial assets was securitization in 2015,meanwhile it succeeded raise 800 million RMB via list on the Shenzhen Stock Exchange.Therefore,this paper makes use of this example which is China's first internet consumer financial asset securitization with qualitative and quantitative analysis to convey that e-commerce companies can sell its internet consumer financial assets to investors via SPV to accelerate capital circulation and to maximize the financial value of financing.Through the analysis of the case,I found that e-commerce companies use the internet consumer financial asset securitization has some questions: the assets pool may be have quality deterioration risk,the e-commerce companies may be have information security problems and related laws and regulations are not perfect and so forth.To solve these problems I put forward some suggestions: at the beginning to increase the responsibility of asset securitization transaction parties such as bank supervision,and then set up internet financial data sharing system and develop the internet consumer financial association for prevention and control risks,and so on.