The Role Of CRMW In Mitigating Financing Constraints Of Private Enterprises

CRMW(Credit Risk Mitigation Warrant),a credit risk mitigation document,is a standardized tradable product actively created by an external guarantee institution.In short,it is a standardized insurance product:the investor pays a certain insurance fee,and the insurance liability is borne by the creation agency.However,the "policy" can only be used for a single debt,and cannot be packaged into a CDS.In the event of a default in the payment of a debt or a bankruptcy of the principal,the creation agency shall be liable for compensation to the insured.In 2010,CRMW was launched by the Interbank Market Dealers Association,and its development has been slow and even fading.Until 2018,due to the first link to private enterprises,CRMW returned to people's vision.On October 22,2018,the central bank announced the establishment of a private enterprise bond financing support tool,the CRMW credit risk mitigation certificate,to help resolve the financing problems of private enterprises.The main research subject of this dissertation is that applying CRMW to the study of alleviating the financing dilemma of private enterprises.Research status:Some scholars have made in-depth research on the financing dilemma of private enterprises in China,including reasons,inspirations and countermeasures.At the same time,some scholars have studied the derivative financial instruments related to CRMW,such as CDS.The discussion mainly includes relevant regulatory systems and development status at home and abroad.There is a lack of research on combining the financing difficulties of private enterprises with CRMW and conducting specific examples.And from the perspective of specific industries and even enterprises,it is not enough to study and discuss CRMW's existence motivation,internal mechanism and how financial institutions choose targets.Research ideas:In the case of Jiangsu Zhongtian Technology Co.,Ltd.,the first phase of ultra-short-term financing before the issuance of CRMW in 2018,the company will conduct an in-depth study of corporate financing needs and choose CRMW financing.The motivation and financing advantages,the principle of financial institutions choosing the CRMW standard and the internal mechanism of the CRMW credit risk mitigation certificate.This article will take China Credit and the Industrial Bank's CRMW issued by Zhongtian Technology as an example.It intends to combine strategic theory,business and profit model theory,financing demand analysis theory,etc.,with Zhongtian Science and Technology's strategic planning,business performance indicators and recent In the case of annual investment and financing,through the combination of qualitative and quantitative analysis,Zhongtian Science and Technology adopted the CRMW model for financing advantages,its internal operating mechanism and the principle of financial institutions choosing CRMW.Innovation and application value:The analysis of the ultra-short-term financing under the CRMW guarantee of Zhongtian Technology can provide reference for large-scale financing of private enterprises in the same industry or even in various industries in the market,which can help the capital circulation of China's capital market and promote economic sustainability.Development;analysis of the motivation of CRMW target selection from the perspective of financial institutions can not only serve as a model for other financial institutions to select suitable targets for CRMW guarantee business,but also provide certain enterprises for enterprises that wish to be assisted by financial institutions and adopt CRMW financing methods.Reference indicators and standards;CRMW is the active use of policy instruments by financial institutions under the principle of marketization.The goal is to further stabilize market expectations,improve the credit environment of private enterprise bond markets,and explore whether this method can effectively help private enterprises to finance and solve long-term problems.The difficulty of financing private enterprises has a broad and far-reaching impact on the market economy.