Analysis Of The Impact Of Non-financial Corporate Asset Securitization On Corporate Leverage

The State Council Government Work Report 2017 in March 2017 mentioned,"reducing the corporate leverage as a top priority under the premise of controlling the total leverage rate.We should promote enterprises to revitalize the stock of assets,promote asset securitization,support the marketization of the rule of law debt-to-equity swap,increase equity financing,strengthen the enterprise,especially state-owned enterprise financial leverage constraints,and gradually reduce the corporate debt to a reasonable level.The report has put emphasize on the path of lowering leverage of asset securitization which was described mostly as "to explore infrastructure and other asset securitization" in the previous report.From "exploration" to "advance",which also means that "asset securitization" has shifted from the simple financing function of the embodiment to one of the paths of "lowering lever".According to China’s current securitization business development,asset-backed securities are classified as credit asset-backed securities and corporate asset-backed securities.In the report from "promoting asset securitization" to "reducing corporate leverage" mainly refers to achieving the purpose of reducing corporate leverage through non-financial enterprises’ issuance of corporate asset-backed securities.The research on the accounting problem in the process of asset securitization in China is still in the exploratory stage.The relevant theories are often recreated by the combination of borrowing from foreign experience and our national conditions,which are lack of originality and systematization.It is very necessary to study how to reduce the non-financial enterprise leverage through asset securitization in the background of the vigorous development of asset securitization in China.By using the methods of literature research,case study and combination of quantitative and qualitative analysis,this paper first introduces the relevant theoretical basis of asset securitization,and provides some theoretical support for the latter.Then the paper analyzes whether the non-financial enterprise can reduce the leverage of the enterprise through asset securitization,starting from the current development situation of China’s current non-financial corporate leverage and asset securitization business,to carry out detailed,comprehensive analysis of asset securitization will affect non-financial corporate leverage,how to influence non-financial corporate leverage.At the same time,in order to support the theoretical analysis and find out the relevant measures to deal with the case analysis on China’s current representative non-financial enterprise asset securitization business,the author selected the first single equity assets of China’s logistics support plan-CITIC China Su Ning asset sharing program as the focus of the case study.Integrating theories and practice,this paper first briefly introduces CITIC China Su Ning asset sharing program,and then the analyzes whether the asset securitization of Su Ning is changing or not during the process of business,how it has changed and which link has changed.In the end the paper draws the conclusion.In view of the influence of asset securitization on theoretical analysis and case analysis of non-financial corporate leverage,the author draws a result that non-financial enterprise asset securitization will not reduce the leverage level of the enterprise,and it may have no effect on the level of leverage,or increase enterprise leverage existing.At present,the non-financial enterprises in our country and the leverage rate are significantly higher than the average level in developed countries.In the long run,it well bring bad effect on the economic development of our country.Therefore,the author puts forward some relevant suggestions,namely although non-financial enterprises cannot reduce the leverage through asset securitization,but they are able to fully and reasonably apply the funds raised to reduce the leverage through asset securitization so as to achieve the common desire of national government,the capital market,non-financial enterprises and other aspects.It is hoped that this paper can help non-financial enterprises that are preparing for or need to exert asset securitization.It is also expected to provide a reference for non-financial enterprises that desire to reduce corporate leverage level through asset securitization and thus promote a better development of Chinese non-financial enterprises.