The Case Study Of Wanxin Media Enterprise Asset Securitization

With the increase of residents’ income,the transformation of household consumption and the change of consumption habits stimulate the huge demand for cultural consumption.The rise of Internet technology and electronic devices has a great impact on traditional media industry.To welcome transformation,expand the market and open up a new era of cultural media will be the main keynote for the development of Chinese culture and media industry in the future.The opening of the market,a large number of powerful enterprises poured into the sharing of market profit,the main business of traditional enterprises encountered impact,and the next,will be faced with the continuous integration,reorganization,merger and acquisition of the upstream and downstream industry chain.In the foreseeable future,broadening the financing channels and increasing the scale of financing will become the top priority of financial decisions for cultural media enterprises.Wanxin Media faces huge capital demand and pressure when facing strategic transformation of enterprises.As a way of asset securitization,the investment trust fund of real estate(REITs)can solve the contradiction between the shortage of capital and the sufficiency of idle funds in the society.As the first asset securitization project in the cultural media industry,Wanxin Media has made a good demonstration of the financing of asset securitization through REITs.In this study,the paper mainly through the analysis of the actual cases,after looking at a large number of relevant documents,based on the whole process of REITs project,detailed inquiry into the case of the implementation of asset securitization financing of Wanxin Media by REITs from the perspective of enterprises.This paper further reveals the motivation of Wanxin Media asset securitization,analyzes the operation process and the characteristics of the transaction design in the scheme of asset securitization,as well as the financial effect and market effect after the implementation,This paper puts forward some preventive measures for the risks that may happen to enterprises during the duration of asset securitization projects,and puts forward some suggestions for the deficiencies of asset securitization projects.In this paper,we find that: first,asset securitization is a efficient way for state-owned enterprises to reactivate state assets,realize the value preservation and increment of state-owned assets,and maintain the control of state-owned assets.Second,asset securitization provides stable financing channels and transformation channels for business transformation for large number of real estate enterprises.Third,the implementation of the REITs project of Wanxin Media has reduced the financing cost and the asset liability rate of the enterprise,improved the operating ability of the enterprise’s profitability and optimized the capital structure.However,because asset securitization accounts for a small proportion of total assets,it has limited effect on the optimization of some financial indicators.The successful implementation of Wanxin Media asset securitization project is attributed to the national policy support and the industry development,on the other hand,the enterprise itself has the conditions for the implementation of the securitization.Combined with the new regulation of state-owned assets transfer and business transformation,the implementation route of Wanxin Media can still be used for reference,and securitization programs can still be implemented.The successful implementation of the case of Wanxin Media can provide theoretical basis and operational model for the future cultural media enterprises to finance by asset securitization.