Case Study On Small-loan Asset Securitization Of Alibaba

In order to solve the financing problem of small and micro businesses,China started the experimental unit job of small-loan companies in 2005 and formally released the “Guidance on the Experimental Unit Job of Small-loan Companies” in 2008,allowing private capital to set up small-loan companies.Then small loan companies developed rapidly like bamboo shoots after a spring rain.However,the small-loan companies has been severely restricted because of the strict policy restrictions and single financing channels.Under this background,asset securitization provides a new solution to the financing problem of small loan companies.Asset securitization means small-loan companies can package the company's credit assets into securities and sell them to investors,which can increase the source of funds and wide the financing channels.The paper takes the Dongzhengziguan-Alibaba No.1-10 specific asset administration plans as the research object,analyzes the asset securitization of Ali small-loan in detail,and puts forward some related suggestions to other small-loans companies and the supervision department,using the documentary research,case study and sensitivity analysis method,combining the theories of asset securitization,which is of important theoretical and practical significance in the background of the rapid development of the capital marke.First of all,this paper expounds the development process and current situation of small-loan companies,and raises the problem of financing difficulties.It puts forward that ABS is an innovative way of low cost financing,and summarizes the relevant theories and literature research results both at home and abroad.Then the Ali small-loan ABS is introduced from background,special program introduction,and securitization process.Next,the key part of the paper is case analysis.This paper analyzes the specific asset administration plan from several aspects,including securitization motivation,securitization process,related risks and preventive measures.Ali small-loan's asset securitization is due to the huge demand for capital caused by business expansion.It is also a consideration for avoiding financing constraints,liquidizing remnant assets and getting experience in capital market.In the securitization process,this paper focuses on the analysis of the basic assets,bankruptcy isolation system,transaction structure,cash flow,credit level promotion measures.Then the paper analyzed the effect of this asset securitization,finding that the kind of financing measure coincides with the development of business,effectively reduces the company's financing cost,and also helps to improve the reputation of Ali small-loan,but it is limited to the optimization of the financial structure.Finally,on the basis of summarizing the case of Ali small-loan ABS,the paper tries to provide reference for other small-loan companies and puts forward relevant policy suggestions to government regulators.