The Case Study On Asset Securitization Of Country Garden’s Purchase Tail

After more than 30 years of development,the real estate industry has become a pillar industry of China’s economy.From the beginning of its development,the contribution rate to the national economy has grown rapidly.Among them,2016 accounted for 7.8% of the total GDP.This data has also reached recent years.The new high,the impact of economic regulation in 2017-2018 has declined,but still exerts a significant impact on the economy.The rapid expansion of decades has not only brought real estate prosperity and economic growth,but also brought high leverage in the market.In real estate enterprises,high-leverage operations have become a common phenomenon.With the continuous advancement of state supply-side reforms,deleveraging has become a market task.Due to its large size,capital intensive and high leverage,real estate has become an important area of ??economic de-leverage.At the policy level,a series of regulatory policies have been introduced,including stricter bank credit,rising capital costs and restrictions on purchase policies.The tightening of real estate cash flow,which has highlighted the contradiction between supply and demand of funds,has made the demand for real estate financial innovation higher.Due to its unique advantages,asset securitization has become the most innovative financing method for real estate enterprises.Among them,the issuance of securitization products based on the purchase tail assets has become the “new favorite” in recent years.The securitization of assets at the end of the purchase can not only help the housing enterprises to obtain financing,but also effectively solve the problem of the large amount of purchases that are common in real estate enterprises.At the same time,it can also save financing costs.At this point,the development of securitization of the assets of the house has entered a New Era.This paper uses the case analysis method to study the application of asset securitization in the real estate enterprises in China,and deeply studies the practical application of the asset securitization of the leading house in Country Garden,and analyzes the domestic unsecured purchase of ABS products initiated by Country Garden Group.Operational modes(including transaction structure design,credit enhancement arrangements),risk prevention arrangements,and economic benefits.Through the case analysis of this paper,it is found that the asset securitization of the purchase tail can effectively alleviate the financing dilemma of enterprises,reduce the financing cost,improve the profitability of enterprises,and effectively reduce the financial risks of enterprises.On the basis of case analysis,sum up the real estate enterprises to carry out the purchase tail.In the asset securitization business,it is necessary to strengthen corporate credit management,focus on the selection and restructuring of basic assets,optimize the design of transaction structures,and rationally arrange accounting issues.Through the research of this paper,we try to provide reference value for domestic real estate enterprises to use the financing of securitization of purchase tail.