On Legal Regulation Concerning The Premium Sale Action In China

China's social economy developed very fast in the period of reform and opening-up. Whether in infrastructure, people's living standards or the whole social features changed greatly. However, in the process of rapid growth of the economy in thirty years, the funding gap of local economic construction also become more and more obvious. Financial crisis caused worldwide economic crisis since 2008, because the purpose of our government was to keep the economic growth to ease the impact of economic crisis, it began to ease local debt scale and quantity gradually and the scale of investment and enterprise debts of local government expanded rapidly. Such great local government debt not only hindered the functions of government, but also buried the huge hidden trouble for our future economic development.If we can adopt asset securitization technology dissolve local government debt risk in the current context, this is not only beneficial to the healthy development of the local economy in China, but also the prosperity of financial markets. From the common practice of local debt securitization, the related assets of related investment company which by invested local government is the asset securitization in many local government debt. There are lots of similarities in this kind of asset securitization and real estate asset securitization of enterprise, they are both asset securitization which can produce stable cash flow in the future. Although this business is more mature abroad, it is a relatively new thing in China, many system designs are still in the process of exploration. This paper will study the legal system of local government debt securitization from four parts.The first part is the brief introduction of the basic situation of China's local government debt and to show our local government debt risks. The purpose is to let readers know more knowledge about local government financial situation and provide logical foundation for later study.The second part is to explore the necessity and feasibility of local government debt securitization. The purpose is to point out asset securitization technology is an effective way for resolving our local government debt risk.The third part analyses the defects of our local government debt securitization system design. Defects found mainly in the following aspects: lack of special legislation of asset securitization, the real selling range is narrow, the determination standards of special purpose of institution is too high, the standard and mechanism of credit enhancer is imperfect, the protection for investors is not enough, and other problems.The fourth part gives suggestions from several angles, the purpose is to perfect the system design of asset securitization. This part also put suggestions how to perfect our country's local government debt securitization legal system from following several aspects: makeing a special legislation for asset securitization, enlarging real sell range of options, reducing the determination standards of special purpose of institution, sounding the standard and mechanism of credit enhancer, and other aspects.