Theory Of Asset Securitization And The Application In China

Asset secuntization is an important financial innovation beginning in America from the 70s of the 20th century. Asset secuntization got the unprecedented development in the nearly thirty years. Then this kind of financing style is applied widely in Europe, Asian and other regions. Asset-backed secuntization has become an important trend of the development of the global finance. Asset securitization is to gather the assets to form an assets pool, which must have stable, calculable and foreseeable cash flow but lack of mobility. Then through the structural reorganization and under the guarantee of expected stable income stream, change it into securities that can be sold and circulated on the financial market. Asset securitization is one of the mainstream financing technologies appeared in the trends of worldwide financing innovation since 1970s. It has not only drastically changed the economic and social life of many countries, but also brought about a series of institutional innovation, market innovation and technology innovation. It has not only theoretical but practical significance to do research on asset securitization.The most important demand to the asset pool in the securitization process is that the asset pool must have calculable and stable future cash flow. To get the reasonable and exact forecast to the future income, it needs the assets in the pool possess a certain scale, must have the durative records of default, rate of felling back, rate of loss, must have the support of standard and high quality assurance and entrust-gathering items. The core of asset securitization is analysis of the cash flow of basic assets. Asset rebuilding, risk segregating and credit enhancement are regarded as three fundamental principals of asset securitization. The three fundamental principals are further analysis of the cash flow of basic assets and deepening of the key principle.With the further development of the financial reform and financial market,our country begins to propose the objective demand for asset securitization. And the objective condition of economic development offers wide space for the starting and development of asset securitization at present. Asset securitization is significant to the development of market economy and the consolidation of high economic increase. Asset securitization is feasible to dissolve the business risk of the bank and develop the mortgage market. Undoubtedly pursuing asset securitization is difficult because of a lot of obstacles in our country, such as obstacles of the accounting system, obstacles of the legal system, obstacles of the tax system and so on. In the face of these obstacles, we must find the corresponding solution.In the initial stage when our country pursues asset securitization, should choose the assets matching demand of asset securitization with higher degree to launch a pilot project Under the actual conditions of our country at present, the most suitable basic assets are home mortgage and charging infrastructure. In the course of pursuing asset securitization, we should focus on the technology risk, morals risk, credit concentration risk and pricing risk. Recently, the People's Bank of China and China Banking Regulatory commission jointly issue "Administrative Rules for Pilot of Asset Securitization". And the China Development Bank (CDB) and China Construction Bank (CCB) will be pilot institutions for asset securitization. I believe asset securitization can have a rapid development in our country.