Asset Securitization of Internet Finance

Internet finance and assets securitization have developed rapidly in the past two years in China and the combination of them further raises efficiency of capital allocation, which has carved out a new path for China's assets securitization business as well. This paper focuses on the study and exploration in IOUs asset securitization launched by Chinese biggest self-run electric commercial enterprise, Jindong, and their innovations and traits in pioneering the assets securitization of Internet consumer finance, circulating purchases in underlying assets, as well as unique internal credit enhancement and risk management are all concluded. Besides, distinct advantages carried out by the Internet financial asset securitization such as quality of underlying assets, risk management of big data, cost-down capability, etc are also presented. Suggestions as regard to development of asset securitization market in China are put forward furthermore through the analysis of risks that lie in information disclosure and illegal violations in the process of Internet finance asset securitization.