Reserarch On The Effects Of China Credit Securitization

Asset securitization is the promoter of the assets or collection which is lack ofliquidity but can produce stable and foreseeable cash flow in the future sold to ad hocTrust (Special Purpose Vehicle, SPV), through certain structural arrangements,separating and restructuring the securities gains and risks of credit assets andenhancing its credit to trandsfer into securities which can currency freely guaranted bythe cash flows generated by the assets, and sold to investors in financial markets.Asset securitization is an important financial innovation since the twentieth century,and it is the most thrilling event in the financial innovation practice areas. Credit assetSecuritization is one of the important branches and product types. Since the birth ofasset securitization, its rapid development in the United States is one third of thefinancial markets, and became a mainstream technology in the rising wave offinancial innovation, accompanied by the rapid development of economicglobalization, asset securitization has been deepened and promoted----"This creditsystem is also gradually established on a global scale, and is changing the structureand configuration of global financial credit "(Chuenquen Lee,2001)Because the process of asset securitization can construct standard financialproducts, and enhance liquidity of funds in the financial market to meet the rationalallocation of capital on a global scale, improving capital efficiency at the same time,therefore, the effect of the asset securitization will promot the national and globaleconomic and financial development if can fully function with great significance.However, the outbreak of the subprime crisis sweeped the global economy. Akey culprit is the excessive asset securitizations, which allows people to fullyunderstand its ferocious and cruel side. In the post-subprime crisis era, as the majordeveloped economies of the U.S. and Europe have made efforts and attempts onregulatory reform, and have launched a series of regulatory reform measures. Thesemeasures aim to constraint and limitate the excessive financial derivatives andleverage. In the future, these regulatory reforms will undoubtedly help restore investorconfidence and help improve the information disclosure requirements and producttransparency. Therefore, asset securitization business has gained an effective recovery and growth in the world. That asset securitization is still thriving in the globalrevitalization. Some foreign scholars even believe that a strong recovery in assetsecuritization business in the future will have a positive impact and effect to the worldeconomic recovery and development. Meanwhile, nearly half a century practicedevelopment of asset securitization business has proven itself as a qualifed financialinnovation tools throughout the world, its rich utility and internal mechanisms hasmade an important contribution to the institutional innovations of the global financialmarkets. And it will also continue to be confirmed by the development of the worldeconomy in the future.Therefore, to vigorously promote the research of the asset securitization effectsin China, and to deeply explore the effects of asset securitization in the developmentprocess of China's economy, as well as to fully study the urgent need of our country'scurrent economic reform and financial reform to deepen its effects and functions, is anurgent issue.This paper is on the above starting point for the research objectives and, on theanalysis basis of the current situation and characteristics of Chinese credit assetsecuritization, summarizes the main problems in the development process; Meanwhile,focus on the effectiveness and the future impact of China's credit asset securitizationin the field of macro and micro area, and makes a thorough analysis and research, andat the same time modeling with China's listed commercial banks as sample datas totest and verify the effect and impact of the implementation of credit assetsecuritization business on China's banking industry before and after itsimplementation, and to summarize the changes in economic indicators and financialindicators by the empirical analysis and research. In addition, the paper makes adeepened research on the prerequisitly internal and external environment andcondition in the future development of our country's credit asset securitizationbusiness, and makes a summary on its countermeasures that will have higheroperational and reference value.During the study, the paper integrated use of a variety of research tools andmethods, including: specification research and empirical research, comprehensiveinduction and specific analysis, static analysis and dynamic analysis, qualitative and quantitative research, etc..The main conclusions are: the result can be seen from the empirical analysis thatthe business of credit asset securitization can positively promote and enhance theeconomic and financial effects on China's banking industry, and can accelerate thedevelopment and its reform of China's banking industry in the future. The practicalsignificance is obvious. Meanwhile, on the analysis of the current situation of China'sfinancial development, it is easy to find that China's financial system is graduallydeveloping along with the pace of China's economic reform, and has madeconsiderable progress. But it must be noted that China's financial market structure aswell as many other issues still need to be further resolved and consummated: theeffective inter-market linkages and perforation is exile, the proportion of directfinancing remains low, long-term financing of companies still rely mainly on banklending, the dislocation between the banking and capital markets is still serious, theabove problems still impede China's economic development. In addition, thedevelopment trend of China's financial products indicates that the product structure ofthe financial sector is also not very rich and reasonable; the banking assetsexcessively focus on credit; fixed income securities in the capital market are alsofailing; the effective liaison and communication with currency markets and capitalmarkets still less function, etc. Therefore, it is the trend to vigorously promote thedevelopment of China's credit asset securitization business and to throughly play itsrole and effect on China's economic and financial development, and has not to bedelayed.