| The essence of asset securitization, which is an important finance tool and finance innovation, is the mechanism of Risk Remoteness. In other words, whether or not the anticipated effect of asset securitization can be successfully realized mainly depends upon whether or not the foregoing mechanism can be successfully established and operated. This paper aims to study the legal issues relating to the two core issues in relation to risk remoteness of asset securitization (i.e., true sale and bankruptcy remoteness), and to further explore Risk Remoteness in Securities Company ABS and Bank ABS, the two financial products in current asset securitization field in our country.This paper first briefly describes the definition of asset securitization and the meaning of the mechanism of Risk Remoteness from the legal perspective, and discusses the core issues of the mechanism of Risk Remoteness and the decisive function of it. The paper then provides a detailed discussion, in Chapter 2 and Chapter 3 respectively, about the related legal issues in connection with the said two core issues in the mechanism of Risk Remoteness, namely, true sale and bankruptcy remoteness. In terms of the legal issues concerning Risk Remoteness in connection with the foregoing two products, this paper further demonstrates in Chapter 4, by case study, the significant role of the mechanism of Risk Remoteness in asset securitization. This paper finally concludes that we shall count on legal system to hasten the perfection of the mechanism of Risk Remoteness in asset securitization in our country. As to the dissatisfactory situation of the asset securitization in our country currently, this paper further emphasizes that only by effectively realizing the arrangement of the mechanism of Risk Remoteness can the legitimate interests of related transaction participants in asset securitization be protected and the asset securitization business in our country be boosted in a healthy and flourish way.
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