The Cost-Benefit Analysis Of Asset Securitization And A Consumption Of Its Development Mode In China

Asset securitization is one of the mainstream financing technologies appeared in the trends of worldwide financing innovation since 1970s. It has not only drastically changed the economic and social life of many countries, but also brought about a series of institutional innovation, market innovation and technology innovation. It has not only theoretical but practical significance to do research on asset securitization. This paper deals with this topic in six chapters.The first chapter is the introduction part. This part gives out the research background, method, and purpose, a review of past research. It also states the main content of this paper and the shortcomings of this paper.The second chapter gives a general introduction of asset securitization, the definition and appearance of asset securitization, and upon this basis, explains the structural features of asset securitization.The third chapter explains the theoretical basis of the asset securitization transaction, and analyses the mechanism of asset securitization. This is the preparatory part of this paper, it offers the theoretical support for the further analysis, explaining the participant and operating procedures and structure of asset securitization.The fourth chapter firstly points out that due to the special structure and procedures of asset securitization, the traditional legal and accounting institutions cannot fully explain and suit the development of asset securitization, so the cost of asset securitization is reflected in the increase of macro cost and micro cost. Secondly, it points out that asset securitization could decrease information cost, increase company's cash flow and cut down transaction cost.The fifth chapter, having analyzed the China's practical conditions, concludes that asset securitization cannot be used to solve the bad debts problem faced by China's banks. Instead we should put more emphasis on developing offshore asset securitization, taking China's practical situation into account.The sixth chapter is the concluding part; it summarizes the content of this paper.