On The Establishment Of China's Circulated Mortagage System

Security system is needed for economic development, it is the result of highly market-oriented theory which aims at equity trading and animating the economy. Market economy is ruled by law; the essence of security system is that it reflects the necessity of market-oriented economic system, and it promotes the practice of transaction. Security system assures the order of market-oriented economy; meanwhile, the development of market-oriented economy promotes the perfection of security system.The mortgage right system is the core of real rights for security, which is so called"the king of security". The rapid development of national economy asks for a strong need of equity trading. On the one hand, the channels for equity trading are limited and somewhat highly centered; on the other hand, laws are a little too static, thus the market value of property right is set aside, and its nature of circulation is not displayed at all. Therefore, the system designing and the economic development are disconnected. Jurists are now facing the difficulty of making use of treasure effectively and animating resources. China still sticks to traditional guarantee type security system; however, we could open our mind and learn some advanced system from different countries in order to strengthen the goal of equity trading function of mortgage system. After a comparative study of various countries'latest development of real rights for security, we can conclude that contemporary real rights for security mainly has two tendencies: circulated mortgage system and real estate security and securitization. As one of the contemporary tendencies of real rights for security, real estate security and securitization plays an important economic role. Real estate security and securitization, which was originated from Britain and United States, and then became popular in Europe and Japan, is securitization of mortgage credit in nature. The development of real estate security and securitization is seen as the fulfillment of equity trading and elimination of the risk of the bank. We can come to the conclusion by combining its course of development and China's practical situation that this system is not suitable in China. After an overall and deep analysis of marketable mortgage credit, the author believes that various misunderstandings and inappropriateness exist in many current descriptions of circulated mortgage system. Such as its historic origin, its relationship with juridical act of real right theory, and the distinction between guarantee mortgage system etc... This thesis not only assures that circulated mortgage system has the superiority of strengthening the circulation of mortgage and equity trading, but also proposes the assumption of establishing circulated mortgage system in China under the circumstance of adjusting China's economic development and under the supervision of its law.