The Legal Obstacles And Settlement About Asset Securitization And SPT In China

Asset securitization is a new financing instrument that came out fromU.S.A. in 1970s. Now it has become one of the most popular financing techniquein developed countries. Asian countries adapt their law system to assetsecuritization also. After Asian financial crisis, they wanted to use assetsecuritization to strengthen the stability of their financial systems. Inchina, this new technique has been recognized by capital-market from 1990s.Because of the immature legal surroundings, the asset securitization practicein china is still in the manner of off-shore at present. The core issues in this thesis are whether china needs assetsecuritization? Whether china could use asset securitization? How to use it?To answer those questions, the following questions should be resolved firstly:Why did asset securitization come from U.S.A.? What advantages does assetsecuritization have compared with other financial instruments? And whethersimilar comparative advantages exist in china? The first chapter analyzes the definition and process of assetsecuritization, and compares it with some other instruments. This chapter IIIclarifies the problem of "what it is". Then the second chapter deals with"how" it could develop in U.S.A. The main point of asset securitizationmechanism is bankruptcy-remote. This mechanism lowers the cost of capitalfinance and improves the efficiency of the finance. In the U.S.A., bankruptcy program cumbered the creditor's right. Thisis why asset securitization is preferred to. However, the question of whetherthe advantages exist in china needs further analysis. Chapter three focuseson china legal system, and concludes that the bankruptcy law and mortgagelaw is immature and asset securitization can be used to avoid such obstacles. Some obstacles also exist in relevant law about asset securitization.In chapter four, SPT is suggested to resolve problems in carrying out assetsecuritization. But china's trust law is immature, either. The issuingmarket and circulating market of trust certificate in china are inefficient.At the end of this thesis, some suggestions of legislation are broughtforward.