Securitization Of Mortgage, International Comparative Research & Practical Choice Of China

In 1990, Sharp and Miller, the Nobel Prize winners in economics, argued that the securitization of the real estate would be one of the critical perspectives of financial development in the future. Furthermore, they attempted to probe the exact function of the securitization of the real estate in the development of finance In China, though the discussion concerning securitization of home mortgage has been hot for long, It is still at the testing stage, and it is difficult to be carried out in practice at once. Which factors hinder its development of it in China? It is still hard to figure out the explicit answer, at least currently speaking. Among all the relevant factors , imperfect legal system is considered to be the primary obstacle. One of the most fundamental fact is that contents of the nationwide regulations and some local regulations in China do not directly include the securitization of home mortgage.In contrast, in America, effctive legal system of the securitization of home mortgage has been set for decades. Other developed countries and regions began to put forward it according to the experience of U.S.A. It promotes the development of capital market and improves the mobility of the assets of commercial bank To promote the development of securitization of home mortgage in China, we should improve the financial environment and set up the relevant laws and regulations at first.This thesis includes preface and the text. The preface mainly introduces the significance of this paper and the relevant studies on it. The thesis consists of five chapters besides the preface while the details are as following,Chapter one introduces the definition and the characteristic of home mortgage, then points out the current situation of home mortgage in china, put forward the main method, which is the securitization of home mortgage, to solve those problems.Chapter two mainly introduces the theories of securitization of home mortgage.Chapter three compares the process of securitization of home mortgage among American, Canada, Japan and Hong Kong , then concludes the enlightenment to China.Chapter four gives the general analysis on the risk faced by securitization of home mortgage, such as the risk of payment in advance, the risk on interest rate and the risk on credit. Then it introduces the measures how to control these risks.Chapter five introduces the necessity, feasibility and main systematic obstacles of securitization of home mortgage in China.