Exploration On Mortgage-Backed Securitization In China

Being a financial innovation, the mortgage-backed securitization dated back to the end of 1960s and the early 1970s in the United States. It succeeded in solving the commercial bank and saving institutions' problem of lacking asset fluidity, and expanded to the other developed countries and areas in 1980s and 1990s.With the rapid development of the real estate, many experts have done much research on it in our country during the recent years.The real estate industry plays an important role in the national economic development, while it needs the financial supports. Nowadays, the suit manner of financial support turns from traditional credit to mortgage-backed securitization.The paper firstly used the economic theory to analyze how mortgage-backed securitization came into being and developed. It was found that mortgage-backed securitization achieved a combination of three incentive mechanisms respectively for commercial banks, intermediaries and investors, and it was the result of competition between different financial intermediaries in implementing financial function, what's more, the government's active participating and support is the necessary condition.Secondly, the paper dealt with the relationship between the state and trend of the mortgage scale and the financial risks. To eliminate the risks ,mortgage-backed securitization is the wise choice.Finally the paper analyzed the main obstacles which prevent the mortgage-backed securitization from realization in China, and then gave some advises to promote the operation of mortgage-backed securitization in China.