Research On The Motivation And Economic Consequences Of Ruikang's Receivables Securitization

The 13 th Five-Year Plan period is an important stage to implement the strategic goal of "healthy China".Our country continues to increase investment in health care.However,due to the influence of medical industry characteristics,the occupation of receivables and inventory in pharmaceutical circulation enterprises is prominent.In a worse situation,the increase of receivables has become an important issue endangering the survival and development of enterprises.As an efficient direct financing tool,accounts receivable securitization is of great significance to activate the huge amount of receivables,improve the service efficiency of funds,and promote the transformation of enterprises as well as macroeconomic structure.At present,Jiuzhoutong Pharmaceutical Group,Shanghai Pharmaceutical Group,Ruikang pharmaceutical Group and other pharmaceutical circulation giants all adopt this method to relieve the shortage of funds.At the same time,asset securitization brings new opportunities to participants through a series of innovation,such as the design of asset pool and transaction structure,risk-remote mechanism,credit enhancement mechanism and so on.This paper adopts literature research and case analysis.After reviewing the related documents and the basic concept,this paper takes “Ruikang 2017-1” as the case research object to study the cause and economic consequence of asset securitization in pharmaceutical enterprises.In particular,firstly,this paper introduces the basic information of Ruikang pharmaceutical company,and analyzes this securitization project,including basic assets,trading parties,trading structure and the key operation processes.Secondly,this paper analyzes the motivation of the securitization from both macro and micro levels.Thirdly,this paper focuses on the economic consequences of the securitization.When exploring the economic consequences,the paper analyzes the financial and non-financial indicators from economic benefits and financial risks.At the same time,this paper focuses on the benefits and risks brought by “Ruikang 2017-1”to the original equity holders,intermediaries and investors.Finally,according to the results of this paper,we summarize the advantages and disadvantages of “Ruikang 2017-1”,and make further prospects for the development of asset securitization of pharmaceutical circulation enterprises.Ruikang is a listed company in the pharmaceutical circulation industry,with complete public information.“Ruikang 2017-1”is the first securitised product in the pharmaceutical circulation enterprises of Shenzhen Stock Exchange.This study can provide somereferences for the enterprises that intend to implement receivables securitization.In addition,it is beneficial for investors to invest more rationally,and it is also helpful for the government to guide relevant enterprises.