Research On Asset Securitization Of Automobile Consumption Credit

With China's entry to WTO on November 11,2001, Chinese automobile industry, especially sedan industry, and its market will face the opportunity of high growth and the impact of imported cars from multi-national car manufacturing giants. Meanwhile, Chinese government, economic and financial circles have high hopes for consumption credit which could play an important role in stimulating domestic demand and pushing the rapid growth of national economy, because of the slow development of Chinese economy and the pressure from currency depreciation.From the angle of Chinese automobile industry and its market development, the first part of this dissertation will be devoted to the description of the current situation of Chinese sedan industry and automobile consumption credit. Detailed discussion and quantitative analysis will go to the macro economic environments, the consumption level of urban and rural residents, and types of automobile products, prices, financial service and consumption policy of automobiles, which have great influence on the automobile consumption credit. The conclusion will be drawn that there is a great potential market for the automobile consumption credit. And the new idea will be presented that automobile finance company should play a leading role in the development of automobile consumption credit in China.Since 1970s, asset securitization, as the modem finance technology, has been greatly developed in the USA. In 1980s, this technology was widely applied in GB and some countries with continental legal system. In the second part of this dissertation, aiming at the development of Chinese automobile finance company, the writer suggests that China should take advantage of financial innovation to solve its finance problems by developing asset securitization. The writer will continue his description and analysis of asset securitization, including its definition, classification, and the latest development in foreign countries, the mortgage-backed security pricing and the obstacles in our countries.In accordance with the real situation of Chinese automobile consumption credit, the third part of this dissertation will present the suggestion on the aspects of consumption taxes and finance policies, the construction of consumption credit and the development of Chinese asset securitization.The last part is the brief conclusion.