Case Study On SANY Accounts Receivable Securitization

As a kind of innovative financing tool,asset securitization emerged in the United States in the 1970 s and was gradually recognized by the market and rapidly developed on a global scale.The impact on the world's financial economy has also deepened.China's research on asset securitization started late.Some scholars began to theoretically study asset securitization from the end of the 1990 s,and it was not until 2005 that China started piloting practice.In March 2013,as a series of regulations related to asset securitization businesses were successively introduced,China's asset securitization business gradually entered a routine development state.Since 2015,the issuance of corporate asset securitization products has experienced rapid growth and the scale has been significantly expanded.The company's accounts receivable asset securitization products show explosive growth.In the future,this business will have broad prospects for development in China.SANY is a very representative enterprise in China's manufacturing industry.Its issuance of asset securitization products for account receivables is the first asset-backed securities and it's an innovation in the financing mode of the construction machinery industry.This project is a landmark for China's construction machinery industry and even manufacturing asset securitization,so this article selects the SANY Asset Specific Plan as a case study object.The purpose of this paper is to gain a deeper understanding of the model and general operating methods of financing receivables asset securitization in manufacturing companies through case studies of this special plan,and to explore its shortcomings in order to provide new ideas for companies in the same industry.Through analysis,the successful issuance of the ABS plan has achieved the goal of reducing the pressure on stock assets,enhancing the operating capacity of enterprises,and low-cost financing,and providing investors with higher return on investment.However,this plan still has deficiencies and areas that can be improved.For example,it adopts a liquidation structure,lacks liquidity,and does not correspond to the liquidity risk of accounts receivable to provide corresponding risk protection.In this regard,this paper proposes to try to optimize the SANY special plan by trying out the main trust model,loop structure,and setting up a reserve account.