Legal Study Of Offshore Asset Securitization

Assets securitization is a new financing tool. It can be defined as a process that assets with stable cash flow are packaged into securities with great value of investment and sold to the investors in financial market. The biggest advantage for this kind of financial product is that it can assist the financier in transforming the assets with stable cash flow but low liquidity into securitized assets with high liquidity so that the capital adequacy of financier can be greatly enhanced, accordingly the financial market could be safe and developing. Off shore assets securitization is its Foreign-oriented form Their biggest difference lies in whether the spv is set on or off shore. The main purpose for off shore assets securitization is to avoid domestic legal barriers and enjoy tax preference given by off shore financial centre. It is quite important that we have a overall implementation on off shore assets securitization in terms of economy. In practice, there are several legal issues we may encounter such as how to the SPV assets transfer and the legal supervision of off shore assets securitization. This paper aims to give advice on how China can implement off shore assets securitization through its research on the topics mentioned above so as to foster the development of our country's economy.The whole paper contains introduction body and conclusion three parts. The body of this paper consists of five chapters, they are as followings:Chapter one:From economic and legal perspective, the definition of assets securitization and its advantages are introduced. Nexta comparison between assets securitization and other financing tools is made. After that Based on the expounding of concerned elements of off shore financing a definition of off shore assets securitization is concluded. Afterwards the features of off shore assets securitization is expounded and a comparison of off shore assets securitization and cross border assets securitization is also made. Finally, in order to let us have a better understanding of it essence, its motives have been explained.Chapter two:there is risks in any form of financing activities. As a new financing tool, the biggest advantage for assets securitization is its function to isolate the risk from investors through a certain design of SPV. Therefore the importance of SPV in assets securitization is quite obvious. At the beginning of the chapter the definition of SPV is introduced and its relations between other parties in transactions is also explained for the sake of the consolidation of its concept to readers. At last through the expounding of where to set SPV in overseas market a better understanding of SPV from off shore aspect has been given.Chapter three:in this chapter a critical issue, assets transfer in securitization, has been researched. The nature of assets transfer and its legal outcome has been figured out through the research on its legal relations. After that the explanation of the forms of assets transfer has provided us a better understanding of the whole process of how assets securitization runs. Finally through the analysis of《United Nations Convention on the Assignment of Receivables in International Trade》,a solution of cross border assets transfer has been given.Chapter four:this chapter introduces the importance of legal supervision on off shore assets securitization. The contents of assets securitization and its special features have been expounded as well as its principle.Chapter five:this chapter expounds the motives and modules for our country's off shore assets securitization as well as the legal supervision. First, from legal and economic perspective, it explains the motives of implementation of off shore assets securitization in our country.then it put forth some of the suggested modules for China's off shore assets securitization. Finally it expounds the legal supervision toward assets securitization in our country.