Research On ABN Financing Of The Balance Of House Purchase In Shekou, China Merchants

At present,China’s real estate enterprises still take raising funds through bank loans as the main way of financing.However,with the tightening of regulatory policies in the real estate field,the cash flow in the real estate field is facing new challenges,and its traditional financing mode has been greatly affected.Therefore,how to broaden financing channels and reduce their own capital pressure has become a major problem for real estate companies to solve capital problems.As an innovative financing mode,asset securitization products(ABS)can revitalize the capital of enterprises and reduce the financing cost of enterprises.It has achieved rapid development in China.Among them,although asset-backed notes develop late and the investment scale is small,they still play a good supplementary role to the limited financing channels.This paper selects the assetbacked note(ABN)issued by China Merchants Shekou in 2019 for research,which to some extent reflects the effect and risk of real estate enterprises issuing asset-backed notes with the balance of house purchase as the basic asset when the capital pressure is large,and provides a reference for other real estate enterprises to finance related projects.This paper analyzes the issuance process from different aspects.In terms of product design,the asset pool is the sum of basic assets at any time point.China Merchants Shekou introduces special purpose vehicle(SPV)as its issuance carrier in the transaction structure in order to achieve risk isolation,and uses priority / sub stratification,excess cash flow coverage and differential payment commitment to enhance internal and external credit.In terms of motivation,the issuance of asset-backed notes conforms to the development trend of China’s financial market,and explores innovative financing tools to alleviate the capital problems of enterprises.In terms of cash flow,due to the strong strength of China Merchants Shekou and the adoption of circular purchase structure,the cash flow forecast can ensure the due repayment of principal,interest and expenses,and the subsequent repayment of house purchase balance is good.In terms of effect,under the background of increasingly tightening bank loans at this stage,asset-backed notes not only reduce the financing cost of China Merchants Shekou,but also broaden its financing channels and improve the debt situation of enterprises.In addition,there are certain risks in the underlying assets,transaction structure and legal policies of this issuance,and corresponding management measures are taken.Through research,this paper believes that asset-backed notes have great development potential in the field of real estate and can effectively alleviate the financing pressure,but we need to be vigilant about the existing risks.At the same time,this paper puts forward some suggestions on the product design and legal policies of asset-backed notes,including selecting high-quality basic assets,improving the risk isolation mechanism and strengthening legal supervision.