Risks and Countermeasures of Internet Consumer Financial Asset Securitization: A Case Study of Jingdong Baitiao

Zuming Zhang; Yayuan Wen; Yonghao Li; Yunhong Wang; Yi Shen; Xin Yuan

doi:10.54254/2754-1169/82/20230950

Research Article

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Published on 21 May 2024

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Zhang,Z.;Wen,Y.;Li,Y.;Wang,Y.;Shen,Y.;Yuan,X. (2024). Risks and Countermeasures of Internet Consumer Financial Asset Securitization: A Case Study of Jingdong Baitiao. Advances in Economics, Management and Political Sciences,82,110-122.

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Risks and Countermeasures of Internet Consumer Financial Asset Securitization: A Case Study of Jingdong Baitiao

Zuming Zhang *^,1, Yayuan Wen ², Yonghao Li ³, Yunhong Wang ⁴, Yi Shen ⁵, Xin Yuan ⁶

¹ International College, China Agricultural University, Beijing, 100091, China
² Eberly College, Pennsylvania State University, State College, 16803, United States
³ Department of Statistical and Actuarial Sciences, Western University, London, N6A 3K7, Canada
⁴ SILC Business School, Shanghai University, Shanghai, 201800, China
⁵ Economics College, Zhejiang University of Technology, Hang Zhou, 310014, China
⁶ School of International Economics and Business, Shanghai Lixin University of Accounting and Finance, Shanghai, 201209, China

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/82/20230950

Abstract

Asset securitization is one of the most important innovations in the financial field in recent decades. The introduction of this financial instrument enables commercial banks to have both functions as "fund lenders" and "fund sellers". JD Baitiao is the product of asset securitization and is the first Internet credit consumption product in Chinese industry. Due to the huge demand in the credit market, it has been popular among users since its establishment in 2014. We will give a basic introduction to of JD and JD financial asset securitization: the development process and an introduction to the fundamentals of the whole company, including the background of the development of JD Baitiao in financial aspect, as well as the benefits of its appearance in stimulating consumption by users on JD’s platform. We further provide an analysis of the JD Baitiao, including its background, transaction process, asset pool composition, and credit enhancement arrangement. issuance, pricing, to trading, also with its quota application, repayment forms, as well as its risk control system for users. Next, through data and chart analysis, we analyze the various aspects of the securitization risks. Last, based on our analysis, we recommend several ways to improve issuance efficiency and risk management capabilities.

Keywords

Risks, E-commerce, JingDong, ABS

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About volume

Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Conference website: https://2023.icftba.org/

ISBN：978-1-83558-429-3(Print) / 978-1-83558-430-9(Online)

Conference date: 8 November 2023

Editor：Javier Cifuentes-Faura

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.82

ISSN：2754-1169(Print) / 2754-1177(Online)

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