Research On The Risk Of Internet Consumer Financial Of ABS In China

With the development of economy,ABS has gradually become a new tool for enterprise financing.It can reduce the financing cost and enable enterprises to obtain higher income.In recent years,with the development of big data and Internet technology,many Internet consumer finance companies have also been attracted by this new financing tool,using their own platform advantages to set up special asset plans for transactions.By issuing ABS products,Internet finance companies not only broaden financing channels,but also reduce financing costs and promote the rapid development of enterprises.However,in the process of ABS of Internet financial companies,there are various risks,but most enterprises do not have a strong sense of risk control.Therefore,how to reduce the risk of enterprises in the process of asset securitization has become the focus of Internet consumer finance companies.Taking Xiaomi microfinance ABS as a case,this paper makes a risk analysis of the case from the aspects of risks related to basic assets,asset-backed securities,special plan management and other risks.At the same time,it also analyzes the specific measures to prevent the risk of ABS of Xiaomi microfinance.Finally,this paper summarizes the advantages and disadvantages of the risk prevention and control of ABS of Xiaomi microfinance,concludes that the risk control means used by Xiaomi microfinance in the process of asset securitization is sound and effective,and puts forward relevant suggestions for the development of ABS of Xiaomi microfinance and China’s Internet consumer finance companies: Internet consumer finance companies should play a role in promoting the asset securitization business by big data;Appropriately select appropriate external credit enhancement measures to reduce risks;The government should strictly control the leverage ratio of Internet consumer finance companies;The state should constantly improve the legal system,strengthen market supervision,and promote the healthy development of Internet consumer finance companies.