A Preliminary Study On Securitization Of University Assets

The paper analyses the Chinese university financing presentsituation firstly. Then it take the assets securitization theory as referents and proposes the imagination about combination of the university financing and the assets securitization theory.At first, this paper presentation the current condition of the university: the university face the condition of the insufficient fund all along, especially after entering the cycle of the hike in rates in 2007. the cost of the university financing is increased, and it is difficult to fulfill the loan with the bank under the precondition of the tighten monetary policy. This paper proposes to use the practice that the corporate assets securitization in china for reference and make the university assets securitization .This paper has six chapters total: the first part introduces the background of the topics and the summarization of the literature firstly. It describes the current conditions about the higher education financing: the supporting of the capital is lacking strongly when the university expanding. So the university eager to looking for new financing methods. At the same time. Chinese assets securitization are developing with rapidity and providing the foundation of the university assets securitization hypothesis. Firstly the author introduces the concept, the sort and the characteristic of the assets securitization, the main participant of transaction and implement & process of the securitization, Secondly, It proposes to use the theory of the corporation asset backed securitization and the practice experience of the Chinese specific assets administration plan for reference to make the university asset into securitization hypothesis. Thirdly, the paper analyzes the advantage, the disadvantage and the feasibility of the university assets securitization further. And designs the asset securitization solutions for all sorts of university assets. including government financial allocation , intangible assets, income from university logistics, corporation in running school and charges usufruct. The part discuss the situation on public university and private university. 1. Some special purpose funds could not securitization; 2. Some intangible assets have instable cash flow could not securitization. And some stable intangible assets should adopt to contract cash flow. 3. University charge usufruct could adopt participation sale model; 4. University securitization could adopt special purpose trust and specific asset management plan; finally, the paper proposes the current obstruction of the university assets securitization including legal, accounting and tax obstacle. The Chapter Six summarizes the entire paper and makes out the conclusion.The innovation:1. To analyze the possibility of the different assets securitization of university.2. To propose that university assets securitization could adopt participation sale model and replacement of obligation model. The paper draw this conclusion according to the characteristics of the university assets except intangible assets.3. To propose the practice project of the university intangible assets securitization. This securitization could adopt all the model and contract cash flow.